Red Funnel buy-out could signal hope on the horizon

Njord Partners, which says it has an ‘active role in restructurings, in which we have extensive experience, to facilitate a favourable outcome’, said its purchase of Red Funnel ‘marks an exciting new chapter’ for what it calls the ‘iconic ferry operator’ that has been operating between Southampton and the island for 164 years.

Red Funnel, which operates the high-speed Red Jet ferries, recorded losses of almost £200,000 (€230,000) for the year ended 2023, along with outstanding loans amounting to £124,000.

At an event held on the island in May this year to demonstrate the foiling passenger ferries by Artemis Technologies that were planned to be added to the fleet, CEO Fran Collins spoke optimistically about the firm’s future but would not comment on commercial aspects of the business.

“What I will say is that we have been really clear that we’re seeking investment into new tonnage, that the business is in a strong position, that we’re doing what we’ve been doing for 163 years and will continue to do so,” she said.

Njord Partners, Red Funnel and Artemis Technologies have still not said whether the agreement to add the foiling ferries to the fleet is still going ahead following the take-over.

“As a lifeline service provider, it is essential that our partners deeply understand our business and share our values,” said Collins. “Njord Partners has a strong track record of building enduring relationships with owners, management teams, customers, and stakeholders—particularly in transport and maritime—supporting growth and long-term success.”

Njord Partners has won awards for business turnarounds, it says, citing the Valiant Pub Company, Ambassador Cruise Line and Geoquip Marine as examples.

“Red Funnel is a vital part of the Isle of Wight’s economy and community—a true backbone of the Solent and South UK region,” said Jakob Kjellberg, founding partner at Njord Partners.“This is a great company with a proud history and a dedicated management team at its core. We are excited to support Red Funnel’s next chapter, restoring its financial health and empowering its people to deliver the reliable, efficient service that islanders and visitors deserve.”