British luxury motoryacht manufacturer Fairline Boats has reportedly gone into administration, the U.K. financial circumstance analogous to Chapter 11 bankruptcy protection in the United States.
“The luxury yacht manufacturer Fairline Boats has gone into administration just two months after being acquired by the private equity firm Wessex Bristol — putting 450 jobs at risk,” the British newspaper The Guardian reported on Wednesday.
Two managers for the restructuring firm FRP Advisory were appointed joint administrators to Fairline, The Guardian said, noting the administrators anticipate there will be layoffs, but offered no number of employees.
A core team of several dozen staff will be retained to service existing orders and work with suppliers and boat dealers during the next few days while the administrators assess the financial position of the business and determine whether there is any interest in the company and its assets, the newspaper said.
Fairline laid off 185 people after its takeover by Wessex Bristol in late September and moved out of its headquarters in Oundle, Northamptonshire, last week to reduce costs, according to a report on Tuesday by the Northamptonshire Telegraph.
Fairline has built 13,000 boats since its founding in 1963, according to the company website. Its Targa and Squadron lines range from 38 to 78 feet. The company introduced the Targa 53GT this year.
Trade Only Today requested comment from Fairline, Wessex Bristol and FRP Advisory this morning.
FRP Advisory responded with a statement that reads, in part, “A further update will be provided by the joint administrators at FRP Advisory in reasonable time once they have completed an urgent review of the company’s financial position in order to make a more detailed assessment of the company’s longer-term viability in its present form, the business and ongoing staffing needs.”