Luxury Northamptonshire boatbuilder saved from closure after funding deal at Fairline Yachts as they look for a buyer

The joint administrators of Fairline Yachts Limited have secured funding for the business and are still seeking a buyer to take the iconic brand forward.

Additional funding, provided by its existing specialist lender DF Capital, will enable the business to continue the production and sale of its yachts for customers worldwide and retain its 250 employees.

Michael Magnay, joint administrator to Fairline Yachts, said: “Fairline Yachts is an iconic brand with a committed and passionate team of experts who have established deep relationships with dealers and end customers over many years.

"The business is known throughout the world for the quality of its craftsmanship and the innovative design of its yachts.

"We expect that it could have broad appeal, to international investors as well as domestic. We encourage interested parties to make contact with us to discuss the opportunity to acquire this exciting business.”

Founded in 1967, Fairline Yachts has built a reputation for crafting ‘best-in-class’ yachts for its customers.

The company has four yacht ranges, from 33 ft to 68 ft models, sold globally both directly and via local dealerships.

Fairline’s expert team of 250 workers are based across two sites in Oundle and Suffolk.

The new development comes 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 2024, 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 spokesman 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 per cent.

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.

Administrators to Fairline Yachts, Alvarez & Marsal, are now encouraging any interested parties to contact them by emailing [email protected] to discuss the opportunity to acquire one of the yacht industry's most recognisable brands.