Northshore in trouble???

[Twister_Ken]

The mid 30' market is seriously cutthroat

Should be less so for lift keel boats because they're rare birds, but Northshore's approach of driving the product - even at 'entry level' sizes – up and up the quality ladder left it very uncompetitive at the smaller boat level. We priced up a Southerly 32 a few years back and wouldn't have seen change from £200K. The options list prices were breathtaking, and many options were pretty much essential. I understand there ought to be a premium for a such a well-executed lifting keel over a standard sticky-down fin, but not that much of a premium.

 

[Tranona]

What assets ?

Plenty of assets - designs, intellectual property, customer base plus all sorts of physical assets that might be useful for building boats. They were not in the "mid 30'" market having progressively moved away from that sector. Maybe that's the problem. Designing developing and building 60'+ on spec is a risky business.

 

[Oscarpop]

Plenty of assets - designs, intellectual property, customer base plus all sorts of physical assets that might be useful for building boats. They were not in the "mid 30'" market having progressively moved away from that sector. Maybe that's the problem. Designing developing and building 60'+ on spec is a risky business.

Exactly so. The intellectual property is worth the money.They have the market just about cornered. there are other lift keels, but to the best of my knowledge no other swing keels in over 40ft.

The fixtures and fittings are worth a huge amount as their factory was full of new space age stuff.
However I would not be surprised if it was all purchased by a company that was not Northshore LTD, but another subsidiary under the Sunchalk LDT umbrella.

As for the markup on the extras; yes it was scandalous. I questioned why things cost so much , and they really werent happy with me for doing so ( although it was a particularly arrogant salesman).

By example, I asked about a featherstream prop. They wanted £3,000. Darglow sold me one for £1,600.
In addition to this I got to keep the original prop. Darglow also told me that Northshore paid nowhere near the going rate for either the maxprop or featherstream as they bought multiple units and wanted a substantial discount.

Maybe they were offsetting minimal or negative gains in their product, but profiting on the OEM stuff.

Either way, I still love our boat. It is bloody stunning and sails like a dream

 

[Debenair]

As of a few minutes ago this morning, nothing on Companies House direct to show appointment of any insolvency practitioner.

Lester Abbott ceased to be a Director of the main trading Co (now NSY(Southern ltd)) in November 2012.
Name changed to NSY in January 2013 from Northshore Yachts Ltd.

Draw your own conclusions.

 

[Oscarpop]

As of a few minutes ago this morning, nothing on Companies House direct to show appointment of any insolvency practitioner.

Lester Abbott ceased to be a Director of the main trading Co (now NSY(Southern ltd)) in November 2012.
Name changed to NSY in January 2013 from Northshore Yachts Ltd.

Draw your own conclusions.

Asset strip ?

 

[BarryT]

As of a few minutes ago this morning, nothing on Companies House direct to show appointment of any insolvency practitioner.

.

Yes that's strange because its status on our credit checking software has been showing as "meeting of creditors" for a few days. Only one of the group with that though

 

[Salt of the earth]

It's deja vu !

Yes that's strange because its status on our credit checking software has been showing as "meeting of creditors" for a few days. Only one of the group with that though

Look at the terms and conditions on the still active Southerly web site, it's there for all to see. Northshore Yachts from January became a more anonymous NSY(Southern) Ltd, the same as happened to Northshore Composites Ltd last year before they were wound up, becoming NCO Ltd just a few weeks before. Oh and the same Insolvency Practitioner handled both!
The web site T&C's state that Sunchalk Ltd the ultimate holding company (100% shares appear to be held by Lester Abbott), owns the trade names Northshore and Southerly which are licensed to various group companies including SOUTHERLY YACHTS LTD, a new kid on the block.
You don't have to be Einstein or have an MBA to see there was most likely some forethought to this and the future could see all the debt sink without trace on NSY (Southern) Ltd whilst Southerly Yachts Ltd sail off into a bright new future. Pity about the staff, suppliers and let down customers though

 

[dubster67]

I am an IP but not the one dealing with this company and only came across your interesting debate because a client of mine stands to lose money from this liquidation and I was after background information on what happened here

Until the shareholders pass a resolution to liquidate the company, it won't show as "in liquidation" and at a creditors meeting, the creditors decide who will deal with the case. The creditors' meeting is on 2 May

As to whether this is an asset strip or a manipulated liquidation remains to be seen and in many cases where deposits are lost and rumours abound, there will always be (often unfounded) that the directors are up to no good

My client was informed in mid-January the Northshore (still called that at the time) were taking a unilateral decision to pay their suppliers on 90 days instead of whatever they had been used to

A few days later, they changed their name but didn't tell my client

Almost 90 days to the day that the letter re payment was sent out, notices went out regarding liquidation, although the rumour mill was grinding a couple of weeks before that - during their Easter close-down, plus rumours that a sum of money was "available" to pay specific creditors but not all

So there is a lot for the liquidators to look at and do to earn their fee, but I'm not here to defend IP fees!

 

[jbweston]

Offcial notice has been given in the London Gazette of a meeting of creditors of 'NSY (Southern) Limited
(t/a North Shore Yachts Ltd)' to take place on 2 May. In fact the notice was published on 18 April. See:
http://www.london-gazette.co.uk/iss...g-up-creditors;subcategory=meetings-creditors

The sections of the Insolvency Act referred to in the notice all relate to a creditors' voluntary winding up. It will be at that meeting a resolution is passed (or not) appointing a liquidator. Until then the company has just ceased trading - a sort of limbo.

If you are owed anything then you might want to get your proof of debt lodged and go to the meeting.

 

[Heckler]

If i cant afford to pay cash for it i dont have it

A big plus one!
Stu

 

[Ex-SolentBoy]

A big plus one!
Stu

Willingness to borrow money should be directly linked to the certainty of future income streams.

For example, if you have no cash, but can borrow it at 7% to invest it with a 15% return guaranteed you are a fool to not leverage up. That's how Maggie made property millionaires. Thank God.

If you are spending more than you earn but still borrow more to pay effective bribes to the people that are responsible for employing you, that's called doing a Gordon. Madness.

If you think buying a boat with borrowed money because you can just squeeze the marine mortgage repayments from your taxed income makes economic sense you need to read "Finance for Dummies". It might make emotional sense, but it doesn't make financial sense.

 

[fireball]

In the main, Leisure boating doesn't make economic sense.... So whether to borrow to buy or save to buy is purely down to personal preference.

I'm happy with my choice thankyou... And I don't give two hoots what anyone else as to say about it as its not their concern...

 

[AOWYN]

There is never enough money to pay what the Insolvency Practioner would like to charge. Bad enough that suppliers andother creditors get screwed, but the IP always gets richer......

 

[Twister_Ken]

Creditor's meeting called by Chris Stevens of FRP Advisory, Worthing 01903 222 500.

 

[DownWest]

I'm happy with my choice thankyou... And I don't give two hoots what anyone else as to say about it as its not their concern...

Quite, but your taste and choice is still (if a small) part of the market

 

[sailorman]

Quite, but your taste and choice is still (if a small) part of the market

Many new larger craft are funded / off-set via charter work

http://www.sunseekercharters.net/
http://www.oystermarine.com/charter/

 

[Seven Spades]

The liquidators fees = (assets-secured creditors).

 

[Bosun Higgs]

If you want a new custom boat in wood, very definitely the places to go to.
And for this day and age all very good value for money but of course not as cheap as a second hand Bavaria.

Which is a bit like comparing Morgan cars to BMW! Sure there are one or maybe two people who want a new wooden boat of old fashioned design but they are irrelevant to the boatbuilding market

 

[Ex-SolentBoy]

On YBW.com

"According to theories in the marine industry a marital break-down is at the heart of the company's demise"
Read more at http://www.yachtingmonthly.com/news/534377/northshore-yachts-goes-west#OeAdC5O5xubrSxZc.99

No one guessed that one!

 

[Bosun Higgs]

I'm sure that I read somewhere earlier in this thread that it was a shareholders voluntary liquidation, but of course I cant find that bit now. If I'm right then it puts a totally differenet interpretation on whats happening.