More than 100 jobs lost as Burgess Marine collapses

U.K. maritime engineering firm Burgess Marine has gone into administration, following problems with securing payment for a recently completed major refit. 

Sites in Devonport, Portchester, Portsmouth and Southampton have all reportedly closed with all 102 staff being made redundant, while assets in Avonmouth, Lowestoft and Poole have been sold to a ship repairer, saving 45 jobs. Four staff are reported to have been retained to wind the company down. 

According to administrators, BDO, Southampton Marine Services is buying Burgess Marine’s wholly owned subsidiaries allowing them to continue as normal. 

Danny Dartnaill explained, “Regrettably, difficult trading conditions and a shortfall in the company’s working capital position – contributed to by a failure to secure the final payment due in regard to a major refit project – significantly affected the business and its on-going viability.

“We are please to have been able to secure a partial sale of the business as a going concern, preserving 45 jobs. Unfortunately, however, it has been necessary for the remaining aspects of the company to cease trading with immediate effect, resulting in job losses. The administration does not affect the other companies within the wider group, which continue to trade as normal.

“Going forward, the joint administrators will be seeking to maximise recoveries for the benefit of all creditors and will continue to liaise with customers regarding any outstanding contracts.”

The Dover company had been a success story, with chief executive Nick Warren attracting an £11-million ($14.7-million) investment in the firm two years ago after taking over the business from his father, David. However, financial documents filed at the end of 2016 showed a loss of £1.34 million, while the company had turned a profit of £2.32 million in the previous year.

In the 2016 annual report, directors said the company had been impacted by the low price of oil, which meant customers were scaling back their operations and taking vessels out of action.

Yachting News
March 12, 2021
Tried & Tested: Best Yacht Crew Polo Shirts
Tried & Tested: Best Yacht Crew Polo Shirts

In this Tried & Tested, clothing specialist Sea Design conducts a review into the best yacht crew polo shirts on the market. Which garment comes out on top when put to the test? Find out the number one option...

By Nathan Bees
January 21, 2021
Tried & Tested: Best Yacht Cleaning Products
Tried & Tested: Best Yacht Cleaning Products

In this Tried & Tested, yacht cleaning expert Marine 16 Ltd and cleaning expert Judith Shaw rate and review some of the best cleaning products available to buy. Find out which product was crowned the best following rigorous testing.

By Yachting Pages
January 13, 2021
Tried & Tested: Best Water Toys
Tried & Tested: Best Water Toys

In our brand new Tried & Tested, yacht water toy specialist EAMS and a group of experienced superyacht captains and crew rate and review the very best luxury water toys on the market. Find out which brand and product was crowned the best...

By Nathan Bees

Finished reading? Now find your perfect supplier.

Search our industry-leading directory for over 20,000 superyacht suppliers, providers and marinas.

Search now