AgWest eyes public sale path out of creditor protection

Manitoba's AgWest Ltd., an agricultural equipment retailer, may soon be up for sale as the company enters creditor protection in the Court of King’s Bench. The Elie-based business, along with two related numbered companies, entered creditor protection last month. AgWest CEO Derrick Webster said that a public sale is the most likely path forward, though it is ultimately up to the court. AgWest could be of interest to others in the sector, Webster added, and expects a decision in the next 30 days.

AgWest operates eight branches in Manitoba and Saskatchewan, with none of its 109 employees laid off. The Bank of Montreal has pledged to lend up to $6 million to help AgWest operate under extended protection until January 29, 2027. AgWest owed the bank $34.3 million as of October 7, with total secured debt obligations totaling $72.5 million.

The company's financial performance has deteriorated due to challenging market conditions, including low sales of used equipment and inflation in new equipment costs. Prices for used agricultural equipment are dropping, while new equipment costs are inflating, causing reluctance among farmers to purchase. Floods in parts of Manitoba this summer and uncertainty with U.S. tariffs also contributed to AgWest's financial struggles.

The company sold much of its used inventory in auctions last year, losing over 30% of the value it paid for the equipment.

Zweegers Equipment Group, a Dutch company, bought AgWest in 2023. At the same time, AgWest expanded its branch management structure, acquiring two Saskatchewan dealerships and opening two new 20,000-square-foot facilities in Manitoba last year. Despite the expansion, cash flow has not significantly improved, according to Webster.

AgWest hopes to exit creditor protection with fixed costs aligned with a healthy operation. The company currently has assets worth $75.8 million and liabilities of $73.7 million as of August 31. Farm equipment rentals have increased this year due to steel tariffs raising product prices, a sign that new equipment is not moving, according to Stuart Smyth, a University of Saskatchewan agriculture professor. Farm sales have decreased in 2025 and 2026.