By Carole Dennett
Just days after local consortium Vectis Ferries complained that their interest in buying the company had been used to push up the price of cross-Solent operator Red Funnel, it was announced today that the company has been purchased by Njord Partners, a company that specialises in turning around failing businesses.
The deal is said to mark a turning point for the troubled ferry operator, which has struggled under massive debts for some years. Last Friday was the final day that Red Funnel could have extended its financial year before its annual accounts fell due, which many people believed indicated that a deal was very close.
Njord Partners has experience in the hospitality and maritime sectors across the EU and in the UK. Its portfolio includes Valiant Pub Company, Ambassador Cruise Line, and Geoquip Marine. The firm specialises in ‘special situations’, for companies facing complex or troubled financial circumstances. Njord’s website says the business “will typically take an active role in restructurings, in which we have extensive experience, to facilitate a favorable outcome. Post financial restructuring, Njord may work closely with companies, allowing us to help bring back growth and long-term financial viability in the companies.”
Red Funnel CEO Fran Collins said: “Our priority is to ensure Red Funnel operates sustainably and responsibly for decades to come, delivering high-quality, reliable, and friendly services across the Solent. We are delighted to partner with Njord Partners as Red Funnel enters this new chapter. Their milestone commitment gives us the confidence and platform to support our ambitious future plans.”
Jakob Kjellberg, Founding Partner at Njord Partners, added: “Red Funnel is a vital part of the Isle of Wight’s economy and community – a true backbone of the Solent and South UK region.
“This is a great company with a proud history and a dedicated management team at its core. We are excited to support Red Funnel’s next chapter, restoring its financial health and empowering its people to deliver the reliable, efficient service that islanders and visitors deserve.”
The news wasn’t universally welcomed: IW East MP Joe Robertson said: This is a bad day for the Island. Yet another sale to a private equity group who exist for the “uncompromising pursuit of capital preservation” for foreign investors – their words not mine.
“They have not even had the courtesy of contacting local elected representatives to hear our concerns on behalf of Islanders before structuring this deal. While cross-Solent connections are treated purely as a revenue generator for investors in an unregulated framework, Island residents and visitors will continue to pay over-inflated prices.
“The Government must step in. Enough is enough.”
Richard Quigley, the MP for IW West said: “If the new owners are interested in solving the worsening problems around reliability, frequency, and especially pricing, then I’ll happily work with them.
“The new owners would have to have gone out of their way not to have heard Islanders’ concerns. And they’d have to go some way to do a worse job than is currently the case – but time will tell.
“I look forward to hearing their plans to address these very real concerns, felt by everyone across the Island. And I will continue pressing home the point that ferries are a lifeline service for islanders, and we aren’t just a cash machine for private equity.
