Please select your home edition
Edition
Barz Optics - Floaters

A sad day for Najad as economic decline claims another victim

by Des Ryan on 10 Aug 2011
68-year-old Jeanne Socrates on Nereida, her Najad 38, in which she became the oldest woman to solo circumnavigate the world SW
One of the best known names in international boat building for the last forty years has fallen victim to the economic downturn across the Western world. Swedish boat-builder Najad (Najadvarvet AB) has announced that it has submitted a petition for bankruptcy in the District Court at Addevalla, and the court has declared them bankrupt.

The CEO of the company, Mikael Gustavsson, blamed a major liquidity crisis, weak sales, long-term decline in boat demand and ongoing difficulties in financial markets around the world for its demise. He said, 'It is a very difficult and sad day for everyone at Najadvarvet AB, including employees, customers, suppliers and partners.'

More than 2,000 yachts have been launched under the Najad and Maxi brand names in the company's 40-year history. In the last few years, Najadvaret AB has developed and manufactured yachts under the trademarks 'Najad' and 'Maxi Yachts' at the factories in Henån and Åmål.

Most notably, British solo sailor Jeanne Socrates used a Najad 38, Nereida, in her circumnavigation of the world which made her the oldest woman ever to achieve the feat.

For more than 35 years the business was successfully run by founder Berndt Arvidsson, who sold the company in 2006 to a Dutch owner, Alfred van Wincoop.

In 2009 the company was saved from bankruptcy by Animatrix Capital LLP but despite a substantial cash injection and increased efficiency, boat sales were still lower than hoped and orders and prospects for the rest of 2011 were very weak. Mr Gustavsson said they were powerless to prevent bankruptcy happening this time around.

He added: '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.'

The board made the decision at the time of the year when all orders have been delivered to customers so that ‘a minimal number' will suffer bankruptcy.

The company has issued a formal statement, which 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', writes Mikael Gustavsson, managing director and group chief executive for Najadvarvet AB.

'The decision was taken by the board at a point in time during the year when all sold and manufactured boats have been delivered to the customers, which means that a minimal amount of customers will suffer from the bankruptcy. The debts due to suppliers are at the lowest point of the year. All of the company's very skilled employees have received their salary for July and the statutory wage guarantee ought to enter into force as to cover the salary payment in August.

'It is our hope that the efforts employed during the last period will lead to a continued operation of the entire or at least parts of the business' says Hans Johansson, chairman of the board of Najadvarvet AB.'
Barz Optics - San Juan Worlds Best EyewearProtector - 660 x 82Mariners Museum 660x82

Related Articles

See how your smart phone can help save your life
OLAS, the man overboard location alert app from Exposure Lights is available on Android as well as through App Store. OLAS, the man overboard location alert app from Exposure Lights is now available on Android as well as through the App Store.
Posted on 25 May
High water on the great lakes – Boom or bust for boaters?
Boaters can find that deeper water under the keel may open a range of cruising, fishing or sailing grounds to navigation With Great Lakes water levels on the rise and expected to continue to increase into summer, recreational boaters could find that deeper water under the keel may open a whole new range of cruising, fishing or sailing grounds to navigation.
Posted on 19 May
BoatUS 2017 top 10 list of boat names and their meanings
BoatUS, issued its 2017 Top Ten Boat Names list today, a tradition dating back a quarter decade. The nation’s largest recreational boating advocacy, services and safety group, Boat Owners Association of The United States (BoatUS), issued its 2017 Top Ten Boat Names list today, a tradition dating back a quarter decade. The names come from tallying up requests for boat names to the BoatUS Graphics service, and each reveal much about the personality of the vessel’s owner.
Posted on 18 May
Brian McGinnis takes Mid-Atlantic Regional Sunfish Championship
Old Point Comfort Yacht Club hosted a multi-state field for the first 2017 Mid-Atlantic Regional Sunfish Championship. Old Point Comfort Yacht Club hosted a multi-state field for the first 2017 Mid-Atlantic Regional Sunfish Championship. The race was a qualifier for the 2018 Sunfish Worlds. Winds for the weekend tended toward 20 knots or more for Saturday where only four of the nine boats entered finished the five races run on Saturday.
Posted on 9 May
North Technology buys Hall Spars from receivership
North Technology Group (NTG) has announced the acquisition of the Hall Spars business out of receivership. North Technology Group (NTG) has announced the acquisition of the Hall Spars business out of receivership. The Hall Spars US parent company announced in early 2017 that it would be closing the doors due to well publicized financial challenges. The acquisition covers Auckland and Brekens and Hall Spars will re-establish in Rhode Island
Posted on 9 May
Coast Guard finds Aids-to-Navigation shot and sunk near Block Island
Crew of Coast Guard Cutter Ida Lewis discovered a buoy sunk in water with bullet holes, near Block Island, Rhode Island. The crew of Coast Guard Cutter Ida Lewis discovered a buoy sunk in the water with bullet holes, Monday, near Block Island, Rhode Island. The crew was conducting regular aids-to-navigation maintenance when they approached Clay Head buoy number 7 and found it submerged. The crew raised the 12,000-pound buoy and found 20 bullet holes in it.
Posted on 28 Apr
A Few Rays - When you think of sunscreen as a filter....
If a sunscreen is a filter of UV rays, how much is enough? If a sunscreen is a filter of UV rays, how much is enough? Where the skin is exposed and a sunscreen is working for you, it is filtering UV rays. Some of those rays always get through. The percentage of the high energy UVB rays (said to cause sunburn) that get through to cells in the skin can be determined by the claimed SPF of the product you are using.
Posted on 25 Apr
Boat International partners with NZ Millennium Cup 2018
Boat International partners with NZ Millennium Cup 2018 to celebrate superyacht regatta’s tenth anniversary Boat International Media, the global authority on superyachts and the luxury lifestyle that goes with them, has today announced that it will be partnering with the NZ Millennium Cup superyacht regatta, to be held in New Zealand’s Bay of Islands in January 2018.
Posted on 22 Apr
A Few Rays - What is Broad Spectrum Protection?
What is Broad Spectrum sunscreen? Ultraviolet rays only make up a small proportion of all of the sun’s rays. What is Broad Spectrum sunscreen? Ultraviolet rays (UVA, UVB and UVC) only make up a small proportion of all of the sun’s rays. UVA and UVB sun-rays are however the biggest contributors to skin damage from sun.
Posted on 19 Apr
Coast Guard urges boating safety common sense
Coast Guard reminds mariners that as the air temperature is warming the water temperatures are still dangerously cold The Coast Guard is reminding mariners Friday that as the air temperature is warming the water temperatures are still dangerously cold. With the rise in air temperature, the number of boaters, paddle craft users, and water enthusiasts taking to water activities also rises.
Posted on 15 Apr