Najad Files for Bankruptcy

The weak economy claims the life of yet another boatbuilder.

The board of Najadvarvet AB last week submitted a petition for bankruptcy to the District Court of Uddevalla. The Court has declared Najadvarvet AB bankrupt.

According to a statement released on August 9th, the boatbuilder has suffered a major liquidity crisis due to weak sales, decline in demand and ongoing difficulties in the financial markets around the world.

The statement reads:

“During the last 21 months, the new principal owner, Animatrix Capital LLP, has contributed substantive funds to the company. Less than 9 months ago, a major effort was made through a new, reinforced management. The new management has accomplished extensive increases in efficiency and rationalization of the company’s business operations. From the time of the Open Yards 2010, the company has managed to sell 42 boats, whereof 25 were new. However, during the spring of 2011 the sales have reduced substantially and the outstanding orders and prospects for the fall of 2011 are very limited.

The commitment of the employees and their will to contribute has surpassed all our expectations. Despite this commitment to save the company, the misguided ventures during 2006-2009 have caused the company severe and irreparable damage. Due to old disputes and conflicts with third parties as well as other problems, the extensive injections of capital have not been sufficient to save the company. For several years now the market segment for prestige yachts on the international market has for been characterised by strong competition, downward pressure on prices and poor profitability. During the spring of 2011 the market continued to deteriorate, and due to this it is no longer possible to run a profitable business. Therefore, the board of Najadvarvet AB sees no other solution than to file for bankruptcy.

It is a very difficult and sad day for everyone at Najadvarvet AB, including employees, customers, suppliers and partners. We have turned every stone in our attempts to avoid this situation. Today, our last efforts have failed. The parent company is insolvent and therefore has to file for bankruptcy.

(From Mikael Gustavsson, managing director and group chief executive for Najadvarvet AB.)

For the complete story, go to www.ibinews.com.

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