A major quarrier and processor of Caithness stone, which supplied materials for the Scottish Parliament build project, has gone into administration.
Iain Fraser and Tom MacLennan were yesterday appointed joint administrators of the Spittal-based Caithness Stone Industries Ltd, a company that has found itself in financial difficulties despite notching up sales of more than £3 million last year.
The company had supplied stone to many contemporary building projects, including the Scottish Parliament and a host of hotels, visitor centres and public buildings in the UK and further afield.
It had also diversified in recent years into supplying the residential market by launching a range of new stone-based products for kitchens, bathrooms, gardens and furniture.
However, the administrators said that a combination of increasing competition, heavy investment expenditure and rising operating costs resulted in severe and unsustainable cash-flow problems for the business.
Mr Fraser said an audit process would now take place before a final decision over what to do with the business was taken.
He said: “Caithness Stone Industries had a high profile as one of the leading suppliers and processors of Caithness Stone.
“The company invested heavily in new technology in order to improve the efficiency of extraction and processing, and successfully diversified into new residential markets.
“We will now undertake a thorough review of Caithness Stone Industries Ltd, the results of which will determine the next steps for the administration.”