Fairline Boats: 'Significant' number of jobs go in Corby and Oundle

Fairline hoped a £2.8m investment announced in June 2013 would improve its competitiveness

A luxury boat builder hit by financial problems has warned of "significant" job losses.

Fairline Boats, with bases at Corby and Oundle in Northamptonshire, was taken over by Wessex Bristol Investments in October.

The company, which employs 700 people, said it was trying to safeguard as many "British jobs" as possible.

Consultation with staff is under way about a new company structure, finance and job losses, a statement said.

The aim is to create a company "to better reflect the marketplace environment, thereby permitting the business to operate efficiently", a spokesman said.

"Regrettably this process is expected to result in a significant number of redundancies.

"Nonetheless, it is a process entered into in the best interests of the business' key stakeholders, namely the creditors and employees, in an attempt to safeguard as many British jobs possible, in both the present and the future," a statement said

Turnaround specialists KSA is assisting Fairline Boats to negotiate a deal with creditors to allow it to restructure its debt.

Fairline invested £2.8m in 2013 to streamline production to allow more flexibility.

At that time the union Unite said the new investment was accompanied by the loss of 50 production jobs and 10 staff posts, but this was not confirmed by the company.

The union was disappointed with the job losses then as the firm had announced profits of £3.7m in 2012.

Unite is expected to comment on the latest developments later.