Flensburger Schiffbau-Gesellschaft (FSG) and Nobiskrug shipyards have entered insolvency administration with around 500 jobs affected.
The German shipyards are both owned by investor Lars Windhorst.
A preliminary insolvency administration has been established, with lawyers Christoph Morgen and Hendrik Gittermann appointed as the administrators for the affected companies.
According to reports, employees at FSG have faced delays in salary payments, with promised Christmas bonuses also remaining unpaid.
It is also understood a significant portion of the workforce had been temporarily released from their duties.
According to a report in The Munich Eye paper, the power to Nobiskrug is expected to be cut off due to the absence of a power supply contract since December 1.
According to a spokesperson, both shipyards, along with their joint FSG-Nobiskrug Holding, are affected by the insolvency.
In 2014, FSG was acquired by Norwegian shipping and offshore firm Siem Industries.
Insolvency
In 2018 it is understood the shipyard faced a loss of €111 million on revenues of €213 million.
Lars Windhorst took over the shipyard in 2019, but in 2020, FSG filed for insolvency with companies associated with Lars Windhorst taking over the shipyard and retaining a large proportion of the employees.
FSG later acquired manufaturer of luxury yachts Nobiskrug, which was also facing insolvency.
Recently there have been calls from German ministers for Lars Windhorst to withdraw from the company. He is said to have faced criticism for failing to secure new contracts.
In June 2024, Nobiskrug announced the appointment of new management at its Flensburg and Rendsburg facilities.
It was announced the shipyards are to use start-up capital to secure ongoing operations at both locations.
