Broom - more news

[Deleted User YDKXO]

Whilst at SIBS yesterday, we accidentally found ourselves talking to the two new owners of Broom, Mark Garner and Akis Chrisovelidis. FWIW, they told us that they never had any intention of shutting down manufacture of Broom boats completely and that the press had misreported the actual situation. The manufacturing division had been put into administration because of continuing and unsustainable losses but most of the workforce had been offered new contracts of employment with the holding company. Their idea is to complete the build of existing boats on order whilst planning how to restart manufacture on a sustainable basis. Apparently they have talked to a large number of existing Broom owners and the owners association to reassure them about the company's future and discuss possible future models.
This is what we were told. I dont know whether this is the truth but the new owners seemed genuine enough and you have to wonder why they'd bother to man a stand at the show if their intention was to asset strip the company leaving only the service and marina sides of the business, as has been reported

 

[jfm]

They're not asset stripping cos there are no assets to strip from the boat builder. It feels like an administration to escape the boatbuilder's liabilities. Then they will buy the specific assets they need from the adminsitrator and start boat building in a fresh company. Along the lines of a pre-pack. IMHO

 

[Deleted User YDKXO]

They're not asset stripping cos there are no assets to strip from the boat builder. It feels like an administration to escape the boatbuilder's liabilities. Then they will buy the specific assets they need from the adminsitrator and start boat building in a fresh company. Along the lines of a pre-pack. IMHO

That depends on whether the assets of the manufacturing co were owned by the manufacturing co or another co. Even if the property was owned by another group co, there would likely be very valuable assets held in the manufacturing co like the moulds, stock and orders in hand to strip out prior to administration. But yes of course the main purpose of the administration would be to sidestep the manufacturing co's liabilities. It does beg the question whether those liabilities included substantial trade creditors and how that would affect restarting manufacture