A group made up of former Red Funnel directors and the founder of Wight Shipyard has claimed that its bid to take over the Isle of Wight to Southampton ferry firm has been turned down.
For the past ten weeks, Vectis Ferries Limited said it has held private talks with Red Funnel’s advisers and funders, but it believes its involvement has been used only to drive up an alternative buyer’s offer.
Warning of rival service
The company has said that if talks cannot be restarted, it has credible options to launch its own competing ferry service.
Vectis Ferries was formed in May and is led by Patrick Seely (who was involved in the Better Ferry Campaign more than ten years ago), a former Red Funnel non-executive director, and Peter Morton, founder and non-executive director of Wight Shipyard.
They are joined by Red Funnel’s former chief executive and chairman Kevin George, former chief financial officer Graham Barnetson, and shipping consultant James Walton.
Plans for major investment
The group has said it is prepared to commit more than £100 million to next generation ferries and shoreside facilities. It said this would provide stability and allow the delivery of a modern, reliable service for decades to come.
The proposals include aluminium vehicle ferries to reduce crossing times and the creation of skilled jobs at Wight Shipyard.
Focus on short-term value
Despite weeks of negotiations, Vectis Ferries said it has been told that short-term incremental value is the priority for Red Funnel. It understands the firm is close to accepting an alternative offer from a private equity company.
A spokesperson for Vectis Ferries said that Red Funnel choosing a marginally higher price may add only a few million to international balance sheets, but it risks losing growth opportunities for the Island, including new employment, better connectivity and an Island-led solution.
Backing the Islanders’ Charter
Vectis Ferries has said it supports the Islanders’ Charter and reforms to what it calls a broken dynamic pricing model.
It is calling for maximum public support and has urged the unnamed private equity group to step aside in favour of a locally based approach.
A spokesperson added that Vectis Ferries remains ready to re-engage at the earliest opportunity. They said until then, faster ferries, more frequent services and new Island jobs remain on hold. They added that this is a reminder of what could be lost if decisions about lifeline transport remain in the hands of those with no strong ties to the community. They said it is time for Islanders to have a say in their future.
Appeal to Government
Vectis Ferries has also called on the Government to remind Red Funnel’s lenders and advisers of their obligations to the community, given the essential nature of the ferry service.
As reported by the CP in April, Red Funnel must secure new investment by 30th September. If this does not happen, lenders could demand repayment, and the company’s accounts state it would not have enough cash or finance to cover this.
OnTheWight has approached Red Funnel for a comment and will update once we hear back.
