Tuesday, 11 June 2013

Caithness Stone Industries Ltd enters administration

Today Iain Fraser and Tom MacLennan of RSM Tenon have been appointed as joint administrators of the copmpany today.

The administrators said the company had run into “severe and unsustainable cash flow problems” as a result of increasing competition, heavy investment expenditure and rising operating costs.

Based in Spittal, in Caithness, the company operated a number of quarries used for excavating stone and for processing and despatching the finished stone, last year reported sales of just over £3 million.

Stone from the company has been widely used in notable construction projects such as the Scottish Parliament and the British Memorial Garden in New York, numerous hotels, visitor centres and public buildings, both in the UK and in overseas. The company's products have also become increasingly popular in the retail home improvement sector.

Business Insiders Scott McCulloch reported today that RSM Tenon's Iain Fraser said: “Caithness Stone Industries had a high profile as one of the leading suppliers and processors of Caithness Stone."

“The company invested heavily in new technology in order to improve the efficiency of extraction and processing, and successfully diversified into new residential markets."

“We will now undertake a thorough review of Caithness Stone Industries Ltd, the results of which will determine the next steps for the administration.”

 No details as yet have been releases on staff numbers, the number of staff affected or if the administrators will continue to run the business as a going concern.

If the business has an underlying viability due to the quality and popularity of its product, and is enjoying improving efficiency though the introduction of new technology this may well indicate this company could well be saved under current ownership and management if the administrators propose and subsequently agree a Company Voluntary Arrangement (CVA) www.companyrescue.co.uk/company-rescue/options/company-voluntary-arrangement with the company's unsecured creditors.  Also the need for prompt redundancies, should this be necessary, could also take place under the CVA.  www.companyrescue.co.uk/company-rescue/guides/making-employees-redundant-in-a-cva

Lets hope the company and much needed manufacturing jobs can be saved and the benefit of the introduction of new technologies brought to bear fruit in the coming years.

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