Scottish government-funded shipbuilder Coastal Workboats has entered into administration following what the company's said were "financial challenges."
The company had specialised in the manufacture of small workboats for the research, towage, and aquaculture sectors. However, five vessels are still unfinished at its facilities in Stornoway in the Outer Hebrides.
FRP Advisory, which has been appointed as administrator, said that Coastal Workboats was beset by financial challenges in 2025, "in part due to design issues and supply chain delays [that] impacted progress on vessel build timescales and placed considerable pressure on the company's cashflow."
The company had been awarded grant funding from government entities Innovate UK and Highlands and Islands Enterprise (HIE) to support its vessel construction activities.
A spokesperson said that HIE is, "working with the administrators to help secure the best possible outcome for public funds," but said that it is, "unable to comment on specific details until outcomes are agreed."
A spokesperson for Innovate UK added that the latter, "will act responsibly as necessary in this case."
FRP Advisory has meanwhile been assisting Coastal Workboats' employees in making, "claims to the redundancy payments office for outstanding wages, holiday pay, statutory notice pay and statutory redundancy pay."
