Red Funnel has confirmed that it has been sold to leading investment manager Njord Partners, marking the start of a new chapter for the cross-Solent operator.
Over the past 5 years, Red Funnel has faced significant challenges, with indebtedness severely limiting its ability to invest. The service has massively declined, from the onboard breakfasts to the reliability of each sailing.
However, it is said that today’s milestone transaction – just in the nick of time – creates a strong foundation for enhancing the service and delivering an ‘outstanding experience’ for Red Funnel passengers.
No details have yet been released about how the new owners plan to turn the ship around and win back customers, including whether or not new vehicle ferries will soon be ordered. There has also been no word on exactly how much Red Funnel has been purchased for.
Last Week, Island Echo reported that a £100million rescue and investment plan had been put forward by Vectis Ferries Limited, but that their bid to take over Red Funnel had been rejected in favour of a private equity firm, now known to be Njord Partners.
Njord Partners was established in 2013 and manages capital in excess of €1billion. The company describes itself as being a provider of ‘flexible debt and equity solutions to companies facing complex situations’, and is dedicated to an ‘uncompromising pursuit of capital preservation’ and delivering ‘superior risk-weight returns to investors’.
It has been nominated for, and won, numerous awards for successful business turnarounds and has particular expertise in the hospitality and maritime sectors, with portfolio companies including Valiant Pub Company, Ambassador Cruise Line, and Geoquip Marine.
The Island’s political leaders won’t be impressed with today’s significant development, having stated that a sale to a private equity group would be ‘bad for the Island’.
Earlier this week, a letter co-signed by Conservative MP Joe Robertson, Labour MP Richard Quigley and Alliance Council Leader Phil Jordan was sent to Maritime Minister Keir Mather asking him to step in on a proposed sale of Red Funnel. That ship has well and truly sailed now, though.
Fran Collins, who appears to be continuing in her role as CEO at Red Funnel, has 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.
“As a lifeline service provider, it is essential that our partners deeply understand our business and share our values. Njord Partners has a strong track record of building enduring relationships with owners, management teams, customers, and stakeholders—particularly in transport and maritime—supporting growth and long-term success.”
Jakob Kjellberg, Founding Partner at Njord Partners, commented:
“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.”
Restoring it’s financial health you say…. how much is this going to cost users of Red Funnel.
Sad but true it means price increases yet again and with wightlink in trouble it’s time to look at another method
Loads I bet…I see big price hikes coming…
Whatever a captive audience is willing to pay. See also NHS and Island roads.
Fare increases is my guess.
I wounder if the board of transport have given the green light for the take over.
Jakob Kjellberg: “Red Funnel is a vital part of the Isle of Wight’s economy and community” – so we know we can screw them into the ground and they have no choice.
what a joke. Wait for prices to sky rocket
One may be tempted to surmise that M/s Collins and her Board are relieved to have sold on Red Funnel, and were thus happy to release a Press Statement to announce same, and enter this ‘new chapter’.
Curiously there is no such similar statement on the Njord Partners website, and the cynics amongst us might say that this is indicative of the level of commitment they are showing toward their latest acquisition.
One has to hope that this is not the case and that the investment which is, sadly , evidently needed to bring the level of service up to an acceptable standard – mechanical breakdowns and weather disruptions aside – is forthcoming and that the new owners are not merely there to asset strip the existing ships and port facilities.
“A provider of ‘flexible debt and equity solutions to companies facing complex situations’, and is dedicated to an ‘uncompromising pursuit of capital preservation’ and delivering ‘superior risk-weight returns to investors’.” Pure Bolloquese. Njord have no intention of benefiting Islanders or our economy. Greed ridden opportunists, only interested in “superior risk-weight returns to the well off. We need a Government with honesty and purpose to put the peoples interests first. Seems fifteen years of self centered failure is being followed by Blairism and ineptitude. Time Parliament grew a pair. Privatisation has destroyed public transport. Renationlisation long overdue. The anger is rising…..
It is all very well bandying round remarks about “restoring financial health” but given they won’teven disclose the sale price let alone any business plan, users can be forgiven for assuming that this is all just a euphemism for “putting up the prices”.
Up go the prices then. Absolute shitshow. Pure corporate greed incoming….