back to article Administrator tries to squeeze blood out of Stone Computers' parent

Senior execs at financially strapped Stone Computers Ltd (SCL) have bid £28.43m to buy the business in a pre-packaged sale after placing the parent company Stone Bidco into administration. But under pre-pack regs, administrator Duff & Phelps has to allow 45-days for someone else to make a rival offer and Stone founder and …

  1. alain williams Silver badge

    I still don't see

    how they can sell the assets and ignore the debts.

  2. Doctor Syntax Silver badge

    Why on earth should the existing senior management be allowed such a purchase unless they make themselves personally responsible for the original debts?

  3. Anonymous Coward
    Anonymous Coward

    Standard practice in the UK, hence the reference to a "pre-pack" arrangement.

    ( just make sure the bank doesn't lose out and the worse you face is an awkward meeting with the people who wont be getting the money they are owed )

    Its one reason to be suspicious of companies that demand 90+ days payment terms.

  4. Mondo the Magnificent
    Mushroom

    Chasing tails....

    I worked for Stone through a buyout.... held a good position, made some good money and decided to flee the rockery when the company "knee jerked" over Cameron's austerity actions in 2010 and decided to lower salaries between 5 to 15% depending on one's pay grade.

    It seems to be a cycle of madness, James Bird forms and runs the business that eventually became Stone and it's profitable and full of happy staff...

    James sells Stone, heads to Spain to soak in the sun and things at Stone go to shit...

    James Bird flies back to Blighty, buys back in to Stone, buys in, sorts it out and it's whistling a happy tune once again..

    Stone buys two companies, an integrator and a portable systems specialist and the staff from these acquisitions leave in droves... the [former] Directors of these companies included, there goes the skills sets out the door... but the iron fisted HR lady and [most] directors don't see this as an issue...

    James Bird leaves Stone "due to internal politics" instigated by the "we want to be at the top" directors..

    Stone goes back to shit and the company's bleeding money and in more debt that Greece...

    Simon Harbridge and his merry do not have the aptitude, mettle or industry knowledge needed to run an IT company. Period...

    Let us watch and wait... (again)

    1. The Godfather
      Coat

      Re: Chasing tails....

      Astute, accurate and precise analysis. History as I knew it too. Fact is that James was Stone, he was both the engine and the driver and his departure left a void that was never adequately filled or managed. Having said that, when one goes through one MBO via a VC (one that knew zulch about the business), goes through a tricky patch and requires rescue involving another VC, the debt upstairs begins to accumulate. Debt, Loan Notes, accrued interest and not enough profit is always a recipe for disaster. This latest escapade is likely to be merely the beginning of the end.

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