Australian Stock Exchange listed Bluestone Global Limited has collapsed into administration.
Bluestone is the parent company of Hunter Valley labour hire firm ResCo Services.
Bluestone provides a skilled workforce of more than 4000 people across the resources sector, particularly for major coal producers.
Craig Shepard and Mark Uebergang of KordaMentha were appointed voluntary administrators of Bluestone and liquidators of the majority of its subsidiaries last night.
In a statement to the ASX, Bluestone’s directors said the collapse followed the failure of Bluestone’s rights issue earlier this year.
“The company has been unsuccessful in securing the necessary shareholder support to repair its balance sheet, and directors have been left with no option but to place the group under external administration,” the board said in the statement.
“The board deeply regrets the inconvenience and disruption that will affect the company’s workforce and its clients.”
Last year Bluestone recorded revenue of $281 million. However, the company’s annual report indicated the sector was struggling.
“Our industry has been under intense pressure to reduce margins as client orders have steadily been reducing in frequency and quantity. This difficult financial landscape was also influenced by the ongoing national political uncertainty,” executive chairman Baljit Singh said in the report.
No further information was available from KordaMentha or Bluestone at the time of publication.
Cara Waters is the editor of SmartCompany. Cara was previously a senior reporter at the Financial Times website FT Adviser in London and has also worked for The Sunday Times.
