Oyster Yachts in Financial Administration

What a shame...

Could it be partially a case of growing too fast? Just a few years for of their line was in the 60' range wasnt it? Building 118 footers is not quite the same...

Was just looking at an Oyster a couple of weeks ago. The broker highlighted several times how financially sound Oyster was. In his defense, he might have been sincere. It would be interesting to know if other people in the industry saw the signs of financial distress prior to this announcement.

Oyster denies being in liquidation. They do acknowledge making all employees redundant.

Regardless, it seems to be a good example of a company convinced an angel is going to come through for them, either a current or new financier. I've seen situations where a company was in non-compliance of covenants and felt certain they'd be granted an exception but the key day hit and none came and the entire loan amount became due.

Now, it seems they're trying to throw and depending on a Hail Mary. Well, Tom Brady threw a great one a few days ago, but the odds are always against them. I suspect they feel the value of the company is far greater than it really is. As pointed out above, it sold cheap last time and likely has no net value today. Lenders just not willing to extend them further and owners not willing to put more money in. Another venture capital stranglehold, choking a company to death.

Now, the big question. Will a new angel step in soon enough to save the company and the current owners and lenders agree to something or will things sit like this, their reputation get destroyer, lawsuits ensue, and very little value remain?

If investors keep having to put more funds in to stay afloat, there's a problem with the business itself as well.

Unless it’s a cash flow thing and the PE firm decided to pull the LOC.

But cash flow things are a problem with the operations. Yes, the PE gets cold feet and bails, but generally they do that only after being given reasons to do so. Some projection or commitment has been missed, likely more than one time. For a PE to pull the plug, they must consider continued operations more risky and costly than shutting down.

That’s true but might also not be indicative of the overall profitability of the company. They might need to get more progress Billings from the owners to help cash management since it is a fairly capital intensive business. What you said is most likely the case but there’s always the off chances of a change in investment strategy with the PE firm or their financial position.

Oyster sailing vessels are very nice. They are also very old designs generally speaking. They have limited appeal. They are very expensive for the marketplace. I wish the well, I would not kick one out of my slip but there are too many options that fit the bill as well or better.

I cannot afford a new Oyster 475, I can afford an Xc 45. They are overprice I think. How does this enter into the equation?

Oyster's assets are currently for sale including all the intellectual property and trademarks. The owner's representatives (including the skipper) of S/Y Polina Star - the vessel that suffered a catastrophic keel failure which was the root of Oyster's financial problems - have created a website detailing their version of events. It's a damning account of Oyster's management in dealing with the keel problem before it failed. The website also raises some interesting questions about the financials of the shipyard. I would supply the link to the website, but I'm not sure that's permitted. A googlesearch of 'Polina star III' should return the site, if you're interested.

The site really highlights the quality problems they are having of recent years. The survey was quite an illuminating read. I personally would not want my keel constructed in that way anyway, opting for a integral keel but it really sounds like this area of the build was very poor.

Oyster has found a new buyer

From the article: "despite it having its largest-ever order book, thought to be about £10m higher than the £70m reported for 2016."

Am I alone in thinking that I may not still want an Oyster Yacht if the company is being restructured ?
If they are going to change the production process ?
I understand they need to make changes for profitability's sake but if I were one of the future customers in that order book and I had based my need for an Oyster Yacht on the quality and performance, what guarantee do I have that the " new" product will live up to the old standards ?

Of course, the "new " product might be better, but I think I'd want to see one or two roll off of the production line first.

Only the very early production units of the Oyster 825 (I believe just the first three or four boats), employed this very suspect hull design and manufacturing process. None of the other Oyster models used this design and manufacturing technique and the subsequent 825s were built differently. Prior to the Polina Star incident, Oyster's reputation, which was well-deserved IMO, for quality was impeccable (if also very pricey).

That's my point. If I ordered an Oyster yacht based on the impeccable quality and reputation and find the new influx of money/management changes the quality to make the production more streamlined and efficient, will it still be the impeccable quality I ordered ?
Will I still even want the " new and improved" Oyster yacht.
I'm not even allowing for the " keel fell off" scenario !

Keep in mind that the new owner has zero experience in boat building.