Cladding Consultants, the parent of Portland stone company Stone Firms that went into Administration last month (21 September), propose to take over the supply of stone from Stone Firms’ three quarries and factory.

As we went to press, a statement was issued saying Barclays were willing to support Cladding Consultants’ proposals.

Geoff Smith resigned as a Director of Stone Firms shortly before the Administrators from KPMG were appointed because, he says, as a Director of Cladding Consultants there would have been a conflict of interests following the statement that Stone Firms would not trade. Cladding Consultants own the quarries, land and premises used by Stone Firms.

Geoff told NSS: “We have made a proposal to KPMG to pay all the creditors and to trade the holding company.”

He says he would re-employ Stone Firms’ 60 people, most of whom KPMG have laid off, and would continue to supply Portland limestone as block and worked stone. The Administrators have only supplied block.

Among the few people retained by the Administrators is Stone Firms Director Neil Fuller. 

Geoff Smith blames a change in attitude by Barclays Bank for Stone Firms’ problems.

He says he believed the bank would provide a bridging loan to cover the costs involved in moving Stone Firms’ factory from its traditional site in Easton, being redeveloped as a Tesco supermarket, to the new location a short distance away.

The Tesco site was being used as security for the loan. The opening of the supermarket has hit delays on highways grounds and it is not now expected to open until after Christmas.

“It’s ridiculous,” says Geoff. “The bank were offered a £1.5million valued asset to loan against but their policy had changed.”

He said Stone Firms had £1.5million worth of work on their books and expected turnover in this financial year to be £4million. He said most of their customers are also experiencing bank problems affecting cashflow.

Stone Firms and Cladding Consultancy also have between them compensation claims lodged with Dorset Council of more than £10million for a Modification Order issued in February last year when Stone Firms applied to implement a 1951 planning permission to quarry part of what is now Portland’s section of the Jurassic Coast, one of the most protected coastlines in the world.

Ian Corfield, Restructuring Director with KPMG who has been appointed as Administrator with Allan Graham, says Stone Firms had suffered a severe decline in revenue over the past two years as a result of the economic downturn. 

He says: “Unfortunately this led to a shortfall of cash and insurmountable pressure from creditors, leaving the directors no alternative but to request the appointment of Administrators.”

Offers from other companies, including rival Portland stone producers Albion, for assets of Stone Firms have been made to the Administrators.