The company behind the Global Challenge round-the-world yacht race
is reported to have gone into administration.
Challenge Business, which was founded by Sir Chay
Blyth, has called in the administrators after struggling to
maintain its turnover.
Last month it announced that it had been forced to postpone its next
Global Challenge, which was scheduled for 2008-09, because it had
failed to find a title sponsor.
Now administrators from Grant Thornton have been called in. Challenge Business also operates corporate events and other yacht races
including the Round Britain and Ireland Challenge and the Transat
Challenge.
Nigel Morrison, one of two joint administrators, said: "The business model for the company required that Global Challenge series attracted heavyweight 'title holder' sponsorship, which proved impossible for the last race in 2004/05.
"The company has worked hard to find a sponsor for the next race in
2008/09, but with no success it was forced to announce the
postponement of the next Global Challenge race. Cash flow became
difficult to manage as the company entered the autumn with very few
events scheduled until next spring."
Mr Morrison added: "Our intention is to establish shortly whether
there is a possibility for a going concern sale of the business or
whether it will be necessary to realise the assets of the company
separately."
In 1971 Sir Chay became the first person to sail
non-stop around the world against the winds and currents. He set up the business 18 years later to give ordinary people the
chance to attempt the same feat in "the challenge of a lifetime, the
adventure of your life".
Challenge Business, which is based in Southampton and has technical
support facilities in Plymouth, now employs around 15 staff. It also
owns 18 yachts, including the 72ft yacht Aviva in which Dee
Caffari became the first woman to sail non-stop the wrong way round the world.
Aviva was one of the big attractions at the recent Southampton Boat Show, and Challenge Business reported that 7,000 people visited her during “a very successful 10 days.”
The next scheduled event for Challenge Business is the Fastnet Challenge, due to take place from November 4th to 11th.
This race, using the Global Challenge yachts, and with participants paying £600 for a berth, follows the route of the renowned bi-annual Fastnet Race, along the South Coast, past the Scilly Isles and out to the Fastnet Rock.
“This is not a challenge for the faint hearted and with the unpredictable conditions of the Irish Sea to contend with, this challenge remains a firm favourite with novices and experts alike,” says the Challenge Business website.
It could be argued that Challenge Business has been a victim of its own success. The Global Challenge formula for getting “ordinary people” to take part in ocean adventures proved so popular that many similar events were staged - not least by Challenge Business - diluting the appeal to media and sponsors of the Global Challenge (“the world's toughest yacht race”) itself.
For more information visit www.challengebusiness.com
