Luxury yacht maker near Peterborough warns of “significant” job losses

Southampton boat show 2015 Launch of the Fairline Targa 53GT EMN-150913-085438009
Southampton boat show 2015 Launch of the Fairline Targa 53GT EMN-150913-085438009
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Bosses of troubled yacht-builder Fairline Boats have warned of “significant” job losses as they battle to keep the company afloat.

The company, which has bases at Oundle and Corby, says it has already begun a consultation period with staff about possible redundancies as it seeks to stem financial losses.

The 52-year-old business has also announced it is seeking agreement from its creditors for a Company Voluntary Arrangement to help it repay burdensome debt.

The news comes just weeks after the company announced it was temporarily laying off 109 of its 465 staff for four weeks.

That action come just a day after the company had been bought by Wessex Bristol Investments from Better Capital.

A statement issued by the company today reads: “Since last month’s acquisition of Fairline Boats Limited, Britain’s leading luxury yacht manufacturer, new owners Wessex Bristol Investments have taken significant steps in moving the company back towards profitability.

“The company has made a recent announcement regarding a workforce restructure, which has involved the business entering into a collective consultation period with staff.

“This will enable Fairline to right-size its operations to better reflect the marketplace environment, thereby permitting the business to operate efficiently.

“Regrettably this process is expected to result in a significant number of redundancies.

“Nonetheless, it is a process entered into in the best interests of the business’ key stakeholders, namely the creditors and employees, in an attempt to safeguard as many British jobs possible, in both the present and the future.

“Furthermore, Fairline has procured the services of turnaround specialists KSA who are assisting in the development of a complete and robust recovery and restructuring plan for the business.

“This will involve the company proposing a Company Voluntary Arrangement (CVA) which, if agreed by creditors, will allow the company to restructure its debt and move forward with a sensible and manageable cost base.

“The company is working closely with its professional advisors and is confident that both staff and creditors will support this proposal, maximising the opportunity for a positive outcome for the greatest number of employees and creditors.

“Once the restructuring has been concluded, Wessex Bristol will turn its attention to implementing its long term growth strategy for this great British manufacturer.

“Wessex Bristol remains committed to the long term success of Fairline and will continue to develop the brand post reorganisation.

“We are in the business of building the best hand-made, custom built British boats in the world and sincerely believe in our plans to ensure the long term success of Fairline.”

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