A behind-closed-doors bid to bring Red Funnel back under local ownership has collapsed at the 11th hour, with Vectis Ferries Limited claiming their £100million rescue and investment plan has been pushed aside in favour of an international private equity buyer.
It can be revealed today (Friday) that the Isle of Wight-based group, led by a team of former Red Funnel executives and respected maritime experts, have spent the past 10 weeks negotiating with Red Funnel’s owners, but say their carefully-prepared bid has simply been used to drive up the price before being rejected.
Vectis Ferries has warned that another short-term investor taking control of the cross-Solent operator will do nothing to resolve the firm’s long-running problems, including outdated ferries and declining reliability.
The company has also made clear that, if shut out of the takeover process, it has credible options to launch a rival ferry service for the Isle of Wight.
The locally-led consortium includes Kevin George, former Chief Executive of Red Funnel, and Graham Barnetson, the ferry firm’s former Chief Financial Officer. They are joined by former non-executive director Patrick Seely, Wight Shipyard’s founder Peter Morton MBE, and shipping industry consultant and turn-around specialist James Walton.
The group says it has secured backing from a private shipping company, a respected Island family with deep maritime roots, and private investors. Together, they have pledged more than £100million for new next-generation ferries and shoreside facilities.
Crucially, the proposals included aluminium-built vehicle ferries that would slash crossing times and boost service frequency. This vision can create skilled jobs at Wight Shipyard while delivering faster, more reliable crossings for Islanders, businesses, and visitors alike.
In a strongly-worded statement, Vectis Ferries has said Red Funnel’s owners and advisers have prioritised ‘short-term incremental value’ and were now well advanced with an alternative offer, believed to be from an overseas private equity company.
A spokesperson for Vectis Ferries has said:
“Vectis remains ready to re-engage at the earliest opportunity. Until then, the chance to secure faster ferries, more frequent services, and new Island jobs is on hold – a reminder of what could be lost if decisions about the Island’s lifeline transport services continue to be left with those with no real ties to the community.
“It is time for Islanders to have a say in their future.”
The company has called on the Government to intervene, reminding Red Funnel’s lenders of their obligations given the lifeline status of cross-Solent services. It has also urged the rival private equity bidder to step aside in favour of an Island solution.
Vectis has already secured support from Isle of Wight MPs Richard Quigley and Joe Robertson, Council Leader Phil Jordan, and former trade union leader Sir Paul Kenny.
Red Funnel, which has changed ownership three times in the past 25 years, reported an accumulated loss of £195.9million earlier this year and continues to operate with ageing Raptor-class ferries that are increasingly unreliable.
While the company looks set to pass into the hands of yet another financial investor, Vectis Ferries has made clear it is prepared to compete head-to-head if necessary, keeping alive the prospect of new ships, local jobs, and a radical transformation of cross-Solent travel.
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