Derecktor Shipyards shuts down Connecticut yard - Trade Only Today

Derecktor Shipyards shuts down Connecticut yard

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Derecktor Shipyards is temporarily closing its operation at Connecticut's Bridgeport Harbor.

Bridgeport city officials said Derecktor, which leased the shipyard from the city's port authority in 2001, is not taking on new projects and has told the city that it is pursuing plans to reposition the company to make it profitable. Workers losing their jobs at the shipyard said they have been told that the shutdown could last at least two or three months, with the economic downturn to blame, The Hartford Courant reported.

Derecktor is about halfway through its 25-year lease with the port authority. According to city officials, the shipbuilder is behind $100,000 in paying rent and other expenses to the authority. The city and Derecktor have been working on a payment plan.

Donald Eversley, director of the Office of Planning and Economic Development in Bridgeport, said the yard remains an attractive location for shipbuilding “should Derecktor conclude their activities in Connecticut.”

Derecktor's troubles are not new — the company emerged from bankruptcy last year. But last month the owner of the 281-foot luxury yacht Cakewalk V, which Derecktor delivered in the fall of 2010, slapped Derecktor with a $12 million lawsuit, alleging breach of contract during the construction of the vessel.

Cakewalk V was put up for sale a few months after it was delivered, and it remains on the market.

Derecktor did not respond to multiple calls to its Connecticut and Mamaroneck offices, the newspaper said.

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