Tim Rudd, whose company ST1 Ltd opened an up-market stone retail outlet in Wilmslow, Cheshire, last year with the idea of developing a national chain, has added four stores in one swoop in a merger with Stonell\'s shops.

ST1 have not bought the company, headquartered in Paddock Wood, Kent, but have bought assets that include shops in Cambridge, Wantage in Oxfordshire, Battersea in London and Paddock Wood and the warehouse in Paddock Wood, although warehousing and distribution have moved to ST1\'s 6,500m2 premises in Burton-upon-Trent.

ST1, who have a catalogue and telesales operation as well as the store in Wilmslow, all trading as Original Stone Company, have also retained directors Dick Chard and Gareth Davies, who will be based at Stonell\'s flagship store in Battersea. Stephen Dewar has departed.

Stonell employed 60 people. There will clearly be some duplication of duties with ST1 staff and Tim Rudd says they have not ruled out the possibility of redundancies.

He says the Stonell outlets, which are also up-market establishments but were always concerned with selling to architects and contractors and not just the public, will be kept much as they are. He also has plans to develop a Stonell Direct website (www.stonelldirect.com).

When the Original Stone Company shop opened in Wilmslow last year, Tim Rudd said he had identified 22 other locations where he would like to have shops, although he added then: "That doesn\'t mean to say we are going to do 22, although I would like to. We are going to tread cautiously."

He says now of the merger with the Stonell outlets: "As with all emerging business sectors it reaches a stage where a major company will emerge and consolidate the market. The joining of ST1 and Stonell creates that major company. The joint expertise which includes knowledgable and experienced staff, excellent, time-tested suppliers, combined with business skills and drive promises an exciting and successful future."

Stonell parent Classical English Stone, launched at the Natural Stone Show in ExCeL in March 2002, got into difficulties last year when a move into the manufacture of English stone tiles through a new subsidiary, Dimensional English Stone, failed and the factory closed after a year. It had never achieved the ambitious target of producing 400m2 of stone tiles a week for the international market.

Classical English Stone was intended to be the vehicle through which the group that encompassed Stonell shops was launched on to the London Stock Exchange. Stephen Dewar, a solicitor, was appointed in 2002 to help prepare for the floatation. That launch was supposed to happen this year but was off the agenda when the tile factory closed (see NSS July 2003 issue).

Director Dick Chard said then: "The bank came along and said: we love your other businesses, but you\'re making us nervous. We couldn\'t see a turn round. If we could, we might have gone back to the investors. But we couldn\'t actually see it turning round."

He says now of the merger with ST1: "While ST1 have seen considerable growth as a stone flooring distributor, they had remained weak in the architectural and interior design sectors. Stonell\'s expertise in these markets and the merged companies\' national coverage will give us the platform to both build market share and increase awareness of stone flooring."

After the closure of Dimensional English Stone Alastair Jessel, managing director of Classical English Stone, went to Dubai to sell stone for projects in the Middle East.

Ashby Stone Masonry, then in Kent, which Classical English Stone had bought in 2002 to make worktops and handle contracts, especially in and around London, have now been sold to the John F Hunt group of companies in Grays, Essex. Hunt already owned stone contractors Putney & Wood.