Plant Closure Timeline: The 90-Day Checklist for Corporate Owners

Closing a manufacturing facility is one of the most complex operational events a company can undertake. The equipment liquidation is just one piece: it intersects with labor law, environmental compliance, lease obligations, customer contracts, and intercompany asset transfers. Based on over 30 years of plant closure engagements, KD Auctions has developed this 90-day timeline to help corporate owners, CFOs, and plant managers sequence the critical steps correctly. Every situation is different. Treat this as a starting framework, not a guarantee.

Days 1–15: Decision, Notifications & Planning

WARN Act Compliance

If the facility employs 100 or more full-time workers and the closure will result in mass layoffs, the federal WARN Act (Worker Adjustment and Retraining Notification Act) requires 60 days' advance written notice to affected workers, the state dislocated worker unit, and the local chief elected official. State mini-WARN laws may impose stricter requirements. Engage employment counsel immediately to determine your notice obligations: the penalties for WARN violations are significant (back pay and benefits for up to 60 days per affected employee).

Customer & Supplier Notification

Identify which customer contracts have notice requirements for facility closure or supply disruption. Review supplier agreements for termination obligations. Notify key customers and suppliers with appropriate lead time: the last thing you need is a supply chain lawsuit on top of a facility closure.

Engage Your Auctioneer Early

The earlier you engage a qualified industrial auctioneer, the better your recovery. An auctioneer can advise on which assets should go to auction, which should be transferred to other facilities, which should go to direct sale, and which need to be scrapped, before you make decisions that are hard to reverse. Request an initial walk-through appraisal to understand what your equipment is actually worth.

Days 15–30: Asset Inventory & Valuation

Complete Asset Inventory

A detailed, tagged asset inventory is the foundation of every successful liquidation. Every piece of equipment should be identified by make, model, year, serial number, and condition. Equipment that is leased must be flagged for return, not sale. Customer-owned tooling and dies must be separated. Assets with UCC liens must be identified so proceeds can be applied correctly.

Lender Notification

If the facility assets are subject to a bank lien or asset-based lending facility, notify your lender of the closure decision early. Most ABL agreements require notice of material operational changes. Early communication allows your lender to begin its own review process and avoids any argument that you concealed a material event.

Environmental Assessment

Engage an environmental consultant to assess any environmental obligations: hazardous materials in equipment, contaminated sumps or floor drains, asbestos in older buildings, PCBs in transformers. Environmental issues that are discovered during auction preparation delay everything and can materially suppress equipment values. Better to discover and address them before marketing begins.

Days 30–60: Marketing & Pre-Sale Preparation

Equipment Preparation

Equipment in auction consistently sells for more when it is clean, tagged, accessible, and demonstrated running. Drain fluids properly. Clean machines. Gather maintenance records, tool lists, and manuals. Identify which machines can be demonstrated for inspection-day buyers. These steps are not glamorous, but they directly impact hammer prices.

Photography & Cataloging

Professional in-house photography and detailed lot descriptions are the difference between a mediocre auction and an exceptional one. KD's in-house photography team produces catalog-quality images for every lot. This is not an area where cutting costs pays off.

Marketing Launch

Targeted marketing to the relevant industrial buyer community should launch as soon as the catalog is ready. This includes direct email to 500,000+ registered industrial buyers, industry-specific marketing to sector-relevant buyers, and online listing across the major industrial auction platforms. The marketing window should run a minimum of two to three weeks before bidding opens.

Days 60–75: Auction Execution

Inspection Day

A well-run inspection day, where serious buyers can physically inspect equipment before bidding, consistently increases hammer prices. Ensure machines are powered and accessible. Have knowledgeable staff available to answer technical questions. Provide copies of maintenance records for key lots.

Bidding Window

Online timed auctions typically run a 7–14 day bidding window. KD uses BidSpotter, a widely used and trusted industrial auction platform that buyers know and trust. The closing mechanism (staggered lot closings with bid extension on activity) maximizes competitive bidding pressure.

Days 75–90: Removal, Settlement & Building Handoff

Buyer Removal Period

Buyers are typically given 10–15 business days after auction close to remove their purchased equipment. Coordinate access carefully: you need to maintain security and avoid damage to remaining building systems during removal. Buyers are responsible for rigging and transport; ensure they engage licensed riggers.

Settlement & Proceeds Distribution

A complete settlement statement is issued within a defined period after the removal deadline. Settlement statements itemize gross proceeds by lot, buyer's premium collected, expense deductions, and net to seller. For lender-controlled situations, proceeds are wired per lien priority. For bankruptcy situations, proceeds go to the estate.

Building Handoff

After all sold equipment is removed and unsold items are disposed of, the building can be returned to the landlord (or prepared for sale). Confirm the building is broom-clean per your lease terms. Document the condition thoroughly before key handoff: photo evidence protects against landlord damage claims.

Plant closures require experienced partners who have done this before. KD Auctions has managed complete facility closures across every major industrial sector and can guide your team through every stage of the process. Call us at 480.455.3910 for a confidential consultation.