System builder Rock has become another high profile victim of the tough trading conditions and has gone into administration.
According to a notice on Rock's web site, Dominic Wong and David Langton of Deloitte and Touch have been appointed as joint administrators and are 'working closely with the management of Rock to secure a sale of the business as a going concern'.
The statement details the reasons for the failure of the business, including "cash flow difficulties faced as a result of stock misappropriation by a former employee". This apparently led to suppliers reducing credit limits which impacted on cash flow. The business had ceased trading before the administrators were appointed.
A skeleton staff is in place to keep the business ticking over, and the administrators have revealed there are a 'number of interested parties'.
Rock was unavailable for comment at the time this article was published.
It is also unclear at this stage how the situation impacts Rock's holding company Rok, which recently took a 51 per cent stake in Rock.
For full statement see here.
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