UK yacht builder enters administration shortly after sale to new owners

Fairline Yachts, a manufacturer of luxury yachts based in Northamptonshire in the UK, has entered into administration less than two months after being sold to investors.

The insolvency proceedings against Fairline began after main lender DF Capital appointed administrators, who then promptly informed the company's employees about the impending proceedings on Monday, January 27.

One of the company's joint administrators told Sky News that the employees were nonetheless told to carry on their work as usual as the search is underway for a new buyer.

Fairline had been sold two months prior to Arrowbolt Propulsion Systems by its previous majority stakeholder, private equity firm Hanover Investors. More than 100 employees were reportedly made redundant following the sale, which gave Arrowbolt at least 75 per cent of the company's shares and voting rights.

The company presently has 17 yachts under construction, though dealers expect these vessels' completion and deliveries will be slightly delayed.

Alvarez and Marsal (A&M) has been appointed as administrator.