The gaming software entrepreneur Richard Hadida (above) has bailed Oyster Yachts out of administration in a rescue hoped to re-employ many of the company’s 420 staff.
The Southampton-based luxury yachtbuilders ceased operations last month despite having record sales in its order books. The company’s collapse was cited as being due to a £5.2m insurance claim following the loss of a nearly new Oyster 825 – Polina Star III. In July 2015 the 80ft yacht’s keel fell off and she capsized and sank off the coast of Spain; there was no loss of life. Her owner Alexander V Ezhkov who bought the boat in May 2014 – had already had issues with the yard over the keel but had been assured that all was well with the boat.
The Russian yacht magazine Yacht Russia filed a comprehensive report in November 2015 of which a translated English version exists: HERE
It is worth noting that no insurance has apparently yet been paid by Oyster to the Russian owner of PSIII; Oyster was making a counter claim, reported as being for £7.2m, against its Ipswich-based subcontractor, Bridgland Moulders Ltd.
It was odd to many in the yachting industry that, despite the legal issues dragging out over two years, Oyster suddenly went into liquidation in early February 2018 making all but 12 of its 420 workforce redundant.
It was only at the end of last year that the company was proclaiming its best season yet with an order book of £80m – up £10m year on year. CEO, David Tydeman, said: “We closed the year with an £80m+ order-book of 25 yachts ranging from Oyster 475-07 to 118-02 securing a positive outlook for 2018 and 2019.
“Sales have been across the Oyster range and we’re particularly pleased with the response to the new family-focused yachts; the Oyster 565, 595 and 675. With 12 of these sold since early summer 2017 – and importantly only two to existing Oyster owners – these new models have attracted new European and international buyers.”
Mr Hadida, who has made his fortune as the founder of gaming software company Evolution Gaming, despite admitting he is “ill-equipped” for the yacht business, says he can bring “commercial acumen and common sense” to the company. His involvement will allow Oyster to resume construction on vessels – such as its 118ft superyacht – and its other operations which had paused following the company’s failure, and which resulted in all but a skeleton staff being made redundant.
The size of Mr Hadida’s investment, through Richard Hadida Yachting Limited, has not been disclosed beyond being described as “many millions”. He is reported as planning to use his own money as working capital and will take on the interim management role until a permanent chief executive is found. It was reported that he is already thinking about Oyster adopting newer modular construction techniques, to help reduce build times, and planning to create a range of smaller boats to broaden the brand’s appeal.
Administrators KPMG told CS today: “We are delighted to have a concluded a sale of the business, ensuring the recommencement of yacht production at the sites in Southampton and Wroxham, together with the opportunities for employment that this will bring; the deal secures continued employment of the 12 retained staff operating out of the two sites.”
Video of Oyster’s 118 superyacht being built: HERE
Polina Star III retrieved from the seabed
