The financial crisis is making its ripple through even high-end markets such as luxury yachts. Ferreti, who owns the Pershing, Riva and CRN brands, are looking for debt restructuring after sales of mega yachts have dramatically fallen, despite last year’s spectacular performance.
International magnates like Roman Abramovich is looking to sell either Chelsea the football club or his prized megayacht, Pelorus.
The fallen rate of visiting tourist has forced the small nation of Maldives to auction off the presidential yacht on Ebay for $7.5M.
Production yacht builders are not spared from the crisis. While Carver yachts’ employees are forced to take double holiday work stoppages, Hatteras Yacht cut another 330 workers in Janurary 2009 after cutting 300 workers last August.
Even up & coming builders already with orders are not immune. Prout have two buyers who had bought multi-million dollars catamarans have defaulted on their stage payments at the end of 2008 when the crisis hit. Prout has tried its best to work with buyers with financing plans.
“We understand that it is a difficult time for everyone and we have discussed with these clients and found a solution that will work for both parties with build as you pay programs”, said Clinton Yuen, the CFO of Prout. He also revealed that their Zhuhai factory recently even offer some kind of builders financing on some of their cats.
Without a clear headway out of this recessionary storm, the industry not only will have to develop innovative products, but also innovative ways to market and sell yachts in order to stay afloat.
Saturday, May 30, 2009
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