A COMPANY chosen to pave the courtyard of the Scottish Parliament has gone into administration, putting a number of highly-skilled jobs at risk.

Caithness Stone Industries said yesterday it has appointed Iain Fraser and Tom MacLennan of RSM Tenon to oversee its business after getting into financial difficulties.

The firm, one of the leading quarriers and processors of Caithness Stone, employs around 25 people. Bosses have blamed "unsustainable cashflow problems".

Trudy Morris, chief executive of Caithness Chamber of Commerce, said the loss of the firm would be a "big blow" to the local economy. She said: "This is a big blow for Caithness. It has been a long-standing business in the area, employs around 25 staff and is seen as an iconic brand. As such we are hopeful a buyer may be sought to take the business on as it has a fantastic reputation for quality and workmanship as well as highly skilled staff.

"As a chamber we will be working alongside our public sector partners to see what can be done to safeguard jobs or transition the staff into new ones."

Caithness stone has been mined in the area for two centuries and is sought after as a premium quality building material around the world, but is expensive.

Based in Spittal, Caithness, Caithness Stone Industries Ltd operates a number of quarries used for excavating the stone.

It was founded in 1999, and last year recorded a turnover of more than £3 million. This year trading has been hit by increasing competition, heavy investment expenditure and rising operating costs.

Mr Fraser 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."