When the world’s second biggest boat builder gets into trouble, you know things are very, very bad! According to the Financial Times, Candover, which acquired a 60% holding in Ferretti last year, is in discussions with merchant bankers at Rothschild, seeking advice on a restructuring of the luxury boat builder’s debts, which stand at €950 million.
This news supports the view of BYM News UK correspondent, Tom Walsh, who – after a second visit to the London Boat Show – found that up beat talk of sales was not matched by up beat talk of profits. Tom reported “Finding out how profit margins are holding up is rather more difficult, but off the record rumors are that worries over exhibiting costs, reduced margins and the future of the exchange rate has many importing ‘big boat, big stand, big cost’ exhibitors seriously considering whether participation in next year’s London event makes financial sense. At present the underlying feeling is that ‘A Co. has to be here because B Co. is’. Whether that imperative survives the current economic turmoil remains to be seen, but from my soundings some pretty hard nosed decisions will need to be made by both exhibitors and organizers.” Full story here.
Add to this the fact that another large power boat manufacturer Hatteras has laid off more than 50% of it’s workforce and you have some black days for the power boat industry…