Uncertain future for Oundle boat builder Fairline Yachts as it goes into administration

Uncertainty continues to surround the future of Oundle-based luxury boat builder Fairline Yachts after it entered administration.

The company, of Nene Valley Business Park, was reported to have gone into administration yesterday (January 27) just a month after being sold.

Administrators Alvarez & Marsal say they are looking to find a new buyer for the company, which employs about 250 people.

It is understood there have not been any redundancies.

Michael Magnay, joint administrator to Fairline Yachts Limited, said: "The business is continuing to trade as usual.

"We are thankful for the support and understanding of staff and there are no redundancies at this time.

"We are actively pursuing a sale of the business and are confident of a substantial amount of interest given the recognised brand and strong heritage.

"We encourage interested parties to make contact with us."

The new development comes a month after the business had been sold to the newly created Arrowbolt Propulsion Systems.

It is understood that Fairline’s main lender, DF Capital, took the business into administration.

The company’s plight comes after what appeared to have been a relatively buoyant year for Fairline.

In March last year, the company staged an open day as it sought to hire 100 new recruits to ensure it could fulfil a booming order book.

At the time Fairline’s order book was worth £100 million.

The company had stated that despite overcoming the challenges of the Covid-19 pandemic, which included difficulties obtaining raw materials because of disruption to its global supply chain, the predominant issue was finding skilled staff.

At the time a spokesperson said: “The missing link to our final success rests in the skilled boat builders who will contribute to our 2024 success story.”

Fairline’s latest accounts submitted to Companies House for the 12 months to the end of 2023, show its turnover had fallen to £41.1 million from 48.3 million in 2022 – a drop of 15 percent.

But they state: “The forecast for 2024 shows an improvement in turnover and profitability as the business returns to a stable platform.”

The accounts also show the company had received £8.8 million in equity funding and additional loans and had received a letter of support from its ultimate shareholder.

Overcoming stormy conditions is nothing new for Fairline Yachts, which can trace its origins back to 1963.

In 2015, the boat builder, which was under the ownership of private equity firm Wessex Bristol which itself had acquired the company from private equity fund Better Capital, went into administration.

Some 380 staff were made redundant before the company was bought by two Russian investors the following year.

It prompted the Unite union to call for a public inquiry into the workings of private equity firms.