Financial problems force luxury boat builder to cut staff in an attempt to keep the company afloat.

UK-based Fairline Boats has warned of further cuts just weeks after the company announced a temporary layoff of nearly a quarter of its staff.

The company – with bases at Oundle and Corby, near Peterborough – has begun a consultation period with staff about the likelihood of redundancies as it seeks to staunch its financial losses.

Wessex Bristol Investments from Better Capital bought the 52-year old boat builder in late September, and have brought in corporate turnaround specialists KSA Group to aid the ailing company in a restructure.

Part of the restructure will include a Company Voluntary Arrangement (CVA), which, if agreed by creditors, will allow the company to restructure its debt.

The group issued a statement yesterday, saying: “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.”

Related links:

Fairline Boats enforces temporary layoff for staff

Fairline Boats acquired by Wessex Bristol