Fairline Yachts Ltd was a British manufacturer of luxury motor yachts established in 1968, which was acquired by a listed private equity fund in 2011. Fairline employed 950 staff and manufactured 146 vessels, with revenues of £79 million, but suffered a loss after tax of £12 million.
In 2012 the new owner undertook a series of restructuring initiatives including significant headcount reductions and the introduction of new models, and the business broke even for the first time since the mid-1990s.
However, following poor sales in 2013, Fairline incurred a loss of £17 million, and continued manufacturing of stock boats led to the market being flooded, depressing the value of new and secondhand sales. In 2015, after further losses were incurred, the decision was taken to sell the business.
Despite a successful transaction the purchaser failed to deliver its contractual working capital injection, and administrators were immediately appointed.
FRP was appointed as administrators and took control of the trading business, stabilising operations and formulating a strategy for the continued manufacture and completion of four vessels to fund working capital and maintain brand value during a two-month trading period.
The administrators generated interest through the press and our network, which resulted in 80 interested parties, with the successful offer coming from two Russian ultra-high-net-worth individuals who made a multi-million pound bid to acquire the assets and brand.
The transaction was concluded after an eight-week sale and due diligence process. This returned a better than anticipated dividend to the secured creditor. Our partner-led approach successfully managed the health and safety risks as well as mitigating the risk of adverse PR.
The case was successfully managed despite involving a listed sponsor and the risk of job losses with a unionised workforce, in an area suffering prolonged economic decline.
Generated by interest through the press and our network