Kellogg Auction Due for London, ON

Kellogg Auction Due for London, ON

2nd Kellogg auction due

The auction to clear out the shut-down Kellogg cereal plant in London isn’t over yet.

Another sale will be needed to move unsold stuff that still fills the massive east London plant that closed late last year, said auctioneer Ryan Haas.

“There will be a second auction for the surplus equipment we did not sell. But we did sell the majority of goods,” said the owner of Corporate Assets Inc. of Toronto.

The next auction date hasn’t been set, but it will be within months and the plant should be empty early in 2016, he said.

“We’re organizing a large area of the warehouse like a candy store.”

Last month’s first auction sold more than 4,000 lots, or collections of related items such as tools, plus large single items like machines. About 1,000 lots remain, Haas said.

The original sale, held in London and online, “was very well attended by buyers from all over the world,” he said.

Haas wouldn’t say how much the auction raised, but said it drew food businesses that compete with Kellogg, as well as manufacturers, resellers, metal and fabricating businesses, small businesses and industry and hobbyists seeking tools and machinery.

The plant, on Dundas Street west of Highbury Avenue, closed last December and was sold to BayShore Groups of St. Catharines in June for $4 million.

Former London mayor Joe Fontana is working with BayShore on the sale, readying the site to be repurposed, and has said BayShore is looking to lease it out for such possible uses as warehousing, manufacturing and office space.

The million-square-foot factory extends into household neighbourhoods and some of it may come down to make way for residential growth, Fontana has said.

More than 500 buyers registered in person and online for the August sale.

Kellogg closed the plant days before Christmas, after 107 years, putting more than 500 people out of work. The U.S.-based company has a plant in Belleville, but London production went to the U.S.

Its demise hastened by changing dietary habits, as more consumers move away from traditional breakfast cereal, the plant made about 27 products, including Corn Flakes, Frosted Flakes, Special K and Rice Krispies.

Kellogg in London

  • Cereal maker opened first factory in 1907.
  • Closed latest plant last December.
  • Building sold for $4 million to BayShore Groups in June.
  • Possible new uses include warehousing, manufacturing, office space and residential.
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June 11, 2018