Stratagem in talks with NRC receiver

Stratagem, the troubled mini-conglomerate, has started talks with the administrator of its former subsidiary NRC, to try to settle a £4m claim relating to the fridge-maker's collapse.

NRC was placed in administration at the beginning of this year. Despite the efforts of the administrator, Daniel Smith of accountants RSM Robson Rhodes, over 300 employees lost their jobs.

The blame for the collapse of the business was placed at the door of Tesco, NRC's largest customer. Mr Smith said the supermarket group had demanded sharp price cuts for its refrigeration equipment and refused to guarantee contracts in the event of NRC being sold to a competitor.

However, he added that he had identified a number of unusual transactions between Stratagem and NRC in the months leading up to the collapse of the business. These included the withdrawal of around £2m of cash from NRC and the sale of its land and property to Stratagem for £4.3m, when the site was valued at £6.35m by surveyors King Sturge.

"We have been reviewing these very strange transactions and we might be able to obtain a settlement from Stratagem," said Mr Smith. "If the claims were settled we would be in a better position for [NRC's] creditors. We are in negotiations but if we do not receive a satisfactory offer, we will start legal proceedings."

Mr Smith would not reveal any further details concerning the talks but it is understood that Tudor Davies, Stratagem's chairman, has offered £400,000 plus a share in any profits from the sale of the land to NRC's administrators.

This would represent a significant cost for Stratagem, which had a market value on Friday of just over £6m.

However, the offer is unlikely to be generous enough to satisfy Mr Smith, who will also have to send a report to the Department of Trade and Industry detailing the reasons for the collapse of NRC.

Stratagem was wracked with controversy over the last 12 months, as Mr Davies battled to force out the former chairman, Bernard Kerrison, and managing director, Bridget de Margary. The duo left earlier this year but have yet to finalise issues relating to their compensation for loss of office.

Mr Davies was unavailable for comment when contacted last week.