Stone rescues sinking Rock

 

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Posted on 1 Jul 2008 at 14:23

Rock has seen a turn of good fortune as its operations have been salvaged by public sector IT provider Stone Group. The group has acquired Rock's trade and assets for an undisclosed amount, and helped the laptop manufacturer fulfil customers' historic orders.

The premium laptop manufacturer went into administration in May 2008, as it struggled to deal with cash-flow problems. It had previously enjoyed a reputation for producing some of the fastest laptops around, consistently being first to market with the latest mobile processors and graphics cards.

However, in May, the company was forced to explain that its warranties were no longer valid and it had ceased undertaking repair work. Fortunately, all warranties were insurance backed, meaning they would still be honoured by Burnett insurance. The plot thickened when the company revealed that a former employee had been generating bogus invoices and swindling cash from under the owner's noses.

"This led to suppliers reducing credit limits, further adversely impacting upon cash flows," the company explained in a statement at the time.

Things went from bad to worse when ROK - a firm which held a 51% stake in the company - announced that it had lost its investment in the firm, and wasn't liable for bailing Rock out.

However, with the offer from Stone and the rogue employee now convicted, former Rock CEO Nick Boardman has plenty to smile about, joining the Stone operating board as director of its mobile technology division

"I am delighted that Stone's backing gives us a tremendous opportunity to build on our market leading credentials in the sector from a much stronger financial base. In particular, for me, it is vital that customers' historic warranties will be supported going forward. Everyone can continue to buy Rock products with confidence."

Parent company Stone admitted it had been eager to get the skills of a specialist laptop company on board to meet the demands of specific government organisations.

"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," said Stone's chief executive James Bird.

Rock has also switched its online forum back on, where customers can voice any queries or concerns that they might have. With the warranty and repair issues now resolved, and the reliable backing of Stone, you can expect to see Rock laptop reviews in Shopper over the next few months.

Author: Dawinderpal Sahota