Stone rescues Rock from a hard place

 

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Posted on 21 May 2008 at 12:55

Troubled laptop maker Rock has been sold as a going concern to public-sector PC supplier, Stone Group Ltd.

Rock went into administration earlier this month, citing the "cash flow difficulties faced as a result of stock misappropriation by a former employee" as one of the reasons for its demise.

Now administrator Deloitte has revealed the company has been sold to Staffordshire-based Stone for an undisclosed sum. "We are delighted that a sale of this award-winning laptop manufacturer has been secured, preserving employment for the staff," says joint administrator Dominic Wong in a statement.

"As well as ensuring the continued availability of Rock's high-performance laptops, the Stone Group has committed to ensuring that existing customers of Rock continue to receive ongoing warranty, repair and technical support services."

Rock's former chief executive told PC Pro that Rock will continue to trade as a separate brand from its Warwickshire headquarters. He said that selling the company to Stone was preferential to an Evesham-style prepack administration deal which sees the company close and re-open with different management.

"We've not done what everyone else has done and closed down, got rid of the debt and opened the next day," Boardman said.

"The problem in this country is that administrators are looking for a quick deal and give the benefit of the doubt to former directors. It's immoral. If I had set up a new company, how could I expect people to trust us?

Rocky year

This latest buyout is the culmination of a turbulent financial year for Rock. Last December, the ROK Entertainment Group announced that it had "acquired a 51% controlling interest in Rock". However, when pressed by PC Pro at the time of entering administration, ROK claimed its relationship with the company did not entail taking on the company's debts, nor its responsibility to its customers. Boardman claims ROK has lost its investment following the Stone buyout, as has he, although he'll continue to work for Stone.

The Stone Group was subject to a £28 million management buyout itself earlier this year - its second management buyout in only three years.

Stone too was unavailable for comment today, although the company's chief executive James Bird claims in the statement: "This transaction is part of our continued growth strategy, where selective acquisitions complement and enhance our existing business, whilst organic growth is maintained by providing a comprehensive, first-class service to our customers."

Author: Barry Collins