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A major boat company in Cowes is to go into administration.
South Boats Special Projects Ltd has called in restructuring experts from national accountancy firm Chantrey Vellacott DFK.
The company employs around 120 people directly and has production and operations across two sites.
It also sub-contracts work out to several other companies based in the Solent area.
Isle of Wight understands there are no redundancies planned currently.
David Clements, partner and restructuring specialist at Chantrey Vellacott DFK, said: "The root of the financial problems the company finds itself in today is mainly due to a combination of the challenge of rapid growth, significant design investment, new product introduction and expansion of manufacturing footprint.
"As a result of the above, cash flow has become critical and despite an order book of some £21 million and a further enquiry pipeline of some £35 million, the possibility of the company continuing without a further investor is not possible.
"In order to protect the company while further investment is sought, the directors have filed a notice of intention to appoint administrators.
"The company has thrived since launching in 1996 and although it has suffered from market fluctuations in recent times its problems are by no means insurmountable.
"The firm is very much the market leader and is recognised as a pioneer in designing and manufacturing wind farm work vessels and we are confident with the right investment in place it can thrive again."
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