Administrators secure successful sale of Realstone assets

Keith Marshall and Gareth Harris of RSM Restructuring Advisory LLP were appointed Joint Administrators of Realstone Limited on 18 May 2016.

Realstone is one of the largest suppliers of natural stone in the UK and operates from its freehold head office and manufacturing site near Chesterfield.

The Joint Administrators of Realstone Limited ('the Company') are pleased to announce the successful sale of the Company’s assets and goodwill to Grants of Shoreditch Limited on 20 July 2016. Grants of Shoreditch are a large, well respected construction solutions provider who work in many areas of the construction process ranging from raised flooring through to pre-cast concrete cladding panels.

During the period since Administration on 18 May 2016, limited conversion of raw materials to finished goods occurred whilst a sale of the business and assets was attempted. However, during June it became apparent that a going concern sale would be unachievable and all 35 employees had been made redundant by early July once production had ceased.

As previously reported in early June, Administration followed a period of sustained trading losses and sales underperformance which meant the business was no longer viable.

RSM also advised on Realstone (Holdings) Limited’s solvent sale of its 100% shareholding in Block Stone Limited, also to Grants of Shoreditch Limited, which completed at the same time as selling the assets and goodwill of Realstone.

Keith Marshall, Joint Administrator and the RSM partner also advising in respect of the share sale of Block Stone Limited, said:

‘This has been a challenging transaction to deliver due to the mixture of interests to manage - from five groups of secured lenders combined with the need to sell both the closely linked insolvent and solvent entities at the same time.