Nobiskrug, the German shipyard that built the iconic Sailing Yacht A, a $580 million superyacht with three masts taller than Big Ben, has filed for bankruptcy

Superyachts capture global attention, and the $580 million Sailing Yacht A was no exception, holding the title of one of the world’s largest sailing yachts, until Jeff Bezos’s Koru came along. Yet, while the yachts themselves inspire awe and admiration, the shipyards behind them often fade into obscurity. Robust as they appear, even shipyards are not immune to turbulent waters.

Two notable names in shipbuilding, Flensburger Schiffbau-Gesellschaft (FSG) and superyacht yard Nobiskrug, which celebrated its 115 years of operation in 2020 have officially filed for bankruptcy, marking a significant blow to their parent company, Tennor Group, and its owner, Lars Windhorst. Months of financial instability and alleged mismanagement have led to their downfall. District courts in Flensburg and Neumünster have now appointed Christoph Morgen and Hendrik Gittermann as provisional insolvency administrators to manage the crisis.

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The situation is particularly dire at Nobiskrug, the creator of the iconic 262-foot Artefact yacht, 303-foot Tatoosh and many more fabulous ships. Reports indicate that if not for a federal police ship undergoing repairs at its Rendsburg facility, even the power supply would have been cut off due to unpaid bills since December 1st.

Over 500 employees are grappling with the fallout, delayed salaries, canceled November payrolls, and no Christmas bonuses. To make matters worse, layoffs are adding to the gloom, leaving many workers in uncertainty right before the holidays. Staff meetings are now underway to address these challenges and discuss the shipyards’ future.

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Adding to the troubles, the German federal government has withdrawn a $67 million grant for the construction of liquefied gas bunker ships at FSG, citing Tennor’s inability to demonstrate sufficient equity capital. This financial lifeline’s loss has further clouded the shipyard’s prospects.

As for what lies ahead, the future remains uncertain. For FSG, government officials are advocating a shift toward manufacturing components for wind turbines, leveraging the growing demand for offshore wind farms. Meanwhile, Nobiskrug might need to diversify into commercial shipping to secure more orders and stabilize operations.