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{{for|shipping containers|containerization}}
{{Infobox company
|name = Sea Containers Ltd.
|logo = [[File:Sea containers logo.svg|250px|Sea Containers logo]]
|type =
|
|foundation = 1965
|
|location_city = [[Hamilton, Bermuda]]<br> [[London]], England
|key_people = {{nowrap|[[Bob Mackenzie (businessman)|Bob Mackenzie]] <small>([[Chief executive officer|CEO]] & [[President (corporate title)|President]])</small><br> [[James Sherwood]] <small>(Founder)</small>}}
|industry = Passenger transport<br> Leisure<br> [[Intermodal container|Marine container]] [[leasing]]
|subsid =
|homepage = [https://web.archive.org/web/20071005120704/http://www.seacontainers.com:80/ www.seacontainers.com]}}
'''Sea Containers''' was a [[Bermuda]]n registered company which operated two
It was founded in 1965 by [[James Sherwood]] and was initially focused on the leasing of [[cargo containers]]. During 1974, Sea Containers was [[Initial public offering|floated]] on the [[New York Stock Exchange]]. Over the next three decades, the company branched into various other markets, leading to the creation of the [[Belmond (company)|Orient-Express Hotels]] chain, [[hovercraft]], and the [[Venice-Simplon Orient Express]] train service. In May 1989, the British-based transport company [[Tiphook]] launched a $824 million bid to take over Sea Containers, which was successfully opposed by Sherwood. Sherwood maintained his leadership of the company into the twenty-first century, during which time he become fairly wealthy, something for which he was criticised following the collapse of the company.
During the 1990s, Sea Containers successfully bid for the [[InterCity East Coast]] [[Passenger rail franchising in Great Britain|franchise]] amid the [[privatisation of British Rail]]; it was awarded a seven-year franchise which it operated via to a newly created subsidiary [[Great North Eastern Railway]] (GNER). In March 2005, the [[Strategic Rail Authority]] awarded the franchise to GNER for a further seven years; however, this newer arrangement lacked [[subsidies]], instead requiring payments from GNER, contributing to the company's future financial hardship. During March 2006, amid several financial setbacks, Sherwood resigned from Sea Containers and many of his other companies.<ref name="Observer" /> On 16 October, the company filed for [[Chapter 11, Title 11, United States Code|Chapter 11]] bankruptcy protection. While the remainder of the group was being wound down and [[Liquidation|liquidated]], the remaining maritime container interests were transferred to the newly created ''SeaCo Ltd'' in 2009.
==History==
===Founding and diversification===
[[File:Sea Containers House (geograph 3183137).jpg|thumb|[[Sea Containers House]] on the [[River Thames]] in
Sea Containers was established in 1965 by [[Yale University]] graduate and retired [[United States Navy]] officer [[James Sherwood]]; it had an initial [[Financial capital|capital]] of [[United States dollar|$]]100,000.<ref>{{cite web |url = http://www.fundinguniverse.com/company-histories/Sea-Containers-Ltd-Company-History.html |title = Sea Containers Ltd. - Company History |publisher = Funding Universe |access-date = 31 March 2009}}</ref> The company's initial activities were centered upon the leasing of [[cargo containers]] to various shipping companies. However, under Sherwood's leadership, Sea Containers expanded over a 40-year period into numerous other markets, including [[luxury hotel]]s and [[railway]]s, many of these sectors being those that Sherwood had taken a personal interest in.<ref name = "times rich2004"/><ref name=Observer/>
During 1968, Sea Containers became a [[public company]]; it was [[Initial public offering|floated]] on the [[New York Stock Exchange]] in 1974.<ref name=Observer/>
After enjoying a stay at the [[Belmond Hotel Cipriani|Hotel Cipriani]] of [[Venice]], Sherwood purchased the luxury hotel.<ref name="Observer" /> Subsequent similar purchased led to the creation of the [[Belmond (company)|Orient-Express Hotels]] chain, which the Sea Containers held a stake in up until 2005.<ref name="Observer" /> Another personal project was the prestigious [[Venice-Simplon Orient Express]] train service. Sherwood acquired thirty old 1920s carriages from across Europe and had them restored from often dilapidated conditions to facilitate the service's relaunch during 1982.<ref>{{cite web |url = https://www.telegraph.co.uk/obituaries/2020/05/20/james-sherwood-founder-sea-containers-put-heart-reviving-orient/ |title = James Sherwood, founder of Sea Containers who put his heart into reviving the Orient Express – obituary |publisher = The Telegraph |date = 20 May 2020 }}</ref><ref>{{cite web |url = https://rail-books.co.uk/products/venice-simplon-orient-express-the-return-of-the-worlds-most-glamorous-train-9780297782612?variant=40657727389805 |title = Venice-Simplon Orient Express: The Return of the World's Most Glamorous Train |website = rail-books.co.uk |access-date = 27 February 2024}}</ref>
During February 1986, the British [[ferry]] company [[Hoverspeed]] was purchased for £5 million by ''British Ferries'', a [[holding company]] for [[Sealink|Sealink UK]], which was in turn owned by Sea Containers.<ref>{{Cite book |last = Parker |first = David |title = The Official History of Privatisation: Volume 2 |publisher = [[Routledge]] |year = 2009 |isbn = 9780415692212 |pages = 443}}</ref><ref>{{Cite journal |last = Wilkins |first = Robin |date = Winter 1988 |title = The Role of Hoverspeed in the Cross Channel Market |journal = Transport Economist |volume = 22 |pages = 7}}</ref>
===Foiled takeover and GNER===
In May 1989, the British-based transport company [[Tiphook]] launched a $824 million bid to takeover Sea Containers, which was vigorously opposed by Sherwood.<ref name=Observer/> Amid this process, Tiphook's management alleged that Sherwood had an [[authoritarian]] management style, while Sherwood issued his own allegations of irregularities in filings with the [[U.S. Securities and Exchange Commission|Securities and Exchange Commission]]. Shareholders ultimately backed Sherwood's position, who had proposed asset sales and a restructuring to win favour, leading to Tiphook failing to acquire the company.<ref name=Observer>{{cite news |url = https://www.theguardian.com/business/2006/may/07/theobserver.observerbusiness |title = Sea Containers grabs at a lifeline |newspaper = [[The Observer]] |first = Oliver |last = Morgan |date = 7 May 2006}}</ref>
During the [[privatisation of British Rail]] of the mid 1990s; Sea Containers was one of various private sector companies that sought to obtain one of the newly created [[Passenger rail franchising in Great Britain|franchise]]s. Over time, it would place bids for multiple franchises, including the [[South Western franchise]] in 2001 and the [[South Eastern franchise]] in 2006.<ref>{{cite news |url = https://www.independent.co.uk/news/uk/home-news/coveted-franchise-operated-by-bermudan-company-633948.html |title = Coveted franchise operated by Bermudan company |newspaper = The Independent |date = 17 October 2000}}</ref><ref>{{cite web |url = http://www.sra.gov.uk/news/20031222_ikf_bidders_selection.tt2 |archive-url = https://web.archive.org/web/20040104233355/http://www.sra.gov.uk/news/20031222_ikf_bidders_selection.tt2 |archive-date = 4 January 2004 |url-status = dead |title = Green Light for High Speed Services for Kent - Four Bidders Selected for new Kent Franchise |publisher = Strategic Rail Authority |date = 22 December 2003}}</ref> However, its first bid was for the [[InterCity East Coast]] franchise, which was viewed as a particularly desirable one to obtain, the [[East Coast Main Line]] (ECML) having been recently electrified while also being worked by the newest intercity stock in British Rail's inventory, the [[InterCity 225]], and thus had a well-established reputation for its high-speed services.<ref name = "grail rail2015">{{Cite magazine |url = https://www.railmagazine.com/operations/franchises/from-poisoned-chalice-to-holy-grail |title = From poisoned chalice to Holy Grail? |date = 7 January 2015 |work = [[Rail Magazine]] |department= Franchises|publisher = [[Bauer Media Group]] |access-date = 19 December 2020}}</ref> In March 1996, Sea Containers was announced as the winner, being awarded a seven-year franchise upon the ECML via to a newly created subsidiary [[Great North Eastern Railway]] (GNER).<ref>{{cite magazine |date = 10 April 1996 |page = 10 |issue = 276 |title = Sea Containers wins East Coast Main Line franchise |magazine = [[Rail Magazine]] |location = [[Peterborough]] |publisher = [[Bauer Media Group]] |df = dmy-all}}</ref>
On 6 November 2006 the [[Department for Work & Pensions]] wrote to Sea Containers that it must pay £143m to its two UK pension schemes if it wants to wind them up.<ref>{{cite web| url=http://news.bbc.co.uk/1/hi/business/6120202.stm| work=[[BBC News]]| title=Pension threat to Sea Containers| accessdate=31 March 2009 | date=6 November 2006}}</ref>▼
During January 1997, Sherwood announced that GNER intended to procure a pair of two new-build [[tilting train]]s which were claimed to enable the [[London]]-[[Edinburgh]] journey to be reduced to only 3 hours and 30 minutes. While an order having been reportedly placed during October 1997, no such tilting trains were ever introduced.<ref name = "grail rail2015"/> Despite this, GNER would successfully increase service speeds and run the fastest scheduled service in Great Britain at that time.<ref name = "grail rail2015"/> In March 2005, the [[Strategic Rail Authority]] awarded the franchise to GNER for a further seven years, starting on 1 May 2005.<ref name="SRA20050322">{{cite press release |url= http://www.sra.gov.uk/news/2005/3/ICEC |title=Biggest Deal in European Rail History Marks East Coast Franchise Announcement |publisher=Strategic Rail Authority |access-date=6 November 2009 |archive-url = https://web.archive.org/web/20050323090129/http://www.sra.gov.uk/news/2005/3/ICEC |archive-date = 23 March 2005 |date=22 March 2005}}</ref><ref>[http://www.railwaygazette.com/news/single-view/view/gner-wins-second-franchise-term.html "GNER wins second franchise term"] {{Webarchive|url=https://web.archive.org/web/20131004213205/http://www.railwaygazette.com/news/single-view/view/gner-wins-second-franchise-term.html |date=4 October 2013 }}. ''Railway Gazette International''. 1 May 2005.</ref> The new franchise's terms were quite different from that of the original period; instead of GNER receiving [[subsidies]], it would be instead paying the British state for the privilege of operating; there was reportedly concerns over the financial viability of such an arrangement from the onset.<ref name = "grail rail2015"/> In order to meet these payments, GNER assumed passenger numbers would increase by around 30 per cent across the life of the franchise, reaching around 20 million by 2015.<ref name = "grail rail2015"/>
On 11 February 2009, its maritime container interests were transferred to a new company SeaCo Ltd, with the wind down and liquidation of the remainder of the group continuing. The major shareholders in the new company were the former Sea Containers Ltd bondholders and two of the group's UK pension funds.<ref name="seaco"/>▼
During his leadership of Sea Containers, Sherwood accumulated substantial personal wealth; his net worth was estimated at [[Pound sterling|£]]60million in the 2004 [[Sunday Times Rich List|''Sunday Times'' Rich List]].<ref name = "times rich2004">{{Cite web |date = 2004 |title = Rich List 2004: James Sherwood |url = http://www.timesonline.co.uk/richlist/person/0,,34291,00.html |url-status = dead |archive-url = https://web.archive.org/web/20110522202100/http://www.timesonline.co.uk/richlist/person/0,,34291,00.html |archive-date = 22 May 2011 |newspaper = The Sunday Times }}</ref><ref name = "notmy independent2006"/>
===Ferry services===▼
*[[Isle of Man Steam Packet Company]]: fast and conventional services in the [[Irish Sea]]. Acquired in 1996, sold in 2003.▼
*[[Silja Line]]: fast and conventional services in the [[Baltic Sea]]. In June 2006 [[Silja Line]] was purchased by [[Tallink]], a ferry company from [[Estonia]]. The fast [[catamaran]] service [[SuperSeaCat]] was separated from Silja Line and operated until 2008 when it went bankrupt.▼
*[[Belmond (company)|Orient-Express Hotels]]: (25% shareholding) sold in 2005<ref name=Observer/>▼
*[[SeaStreak]]: following the Sea Containers bankruptcy of 2006, this operation was sold to New England Fast Ferry<ref>[http://www.nj.com/news/index.ssf/2008/03/new_owner_to_keep_seastreak_fe.html New owner to keep SeaStreak ferries afloat] ''[[Associated Press]]'' 18 March 2008</ref>▼
*SNAV-Hoverspeed: a joint venture with Italian ferry operator [[SNAV]]. Used the former ''Seacat Danmark'' as ''Zara Jet.''▼
*[[Aegean Speed Lines]]: a joint venture in Greece with the Eugenides Group. The service uses the former ''[[HSC High Speed Jet|Hoverspeed Great Britain]]'' as ''Speedrunner 1'', which operated in the [[English Channel]] and held the [[Hales Trophy]] and [[Blue Riband]] for the fastest crossing of the North Atlantic.▼
*[[Hoverspeed]] English Channel services ceased in 2005<ref name=Observer/>▼
*[[SeaCat]]: ([[Belfast]] & [[Troon]]).▼
===Financial hardship and collapse===
===Other===▼
In March 2006, Sea Containers announced that it was in the process of exiting from ferry operations, which had been one of the company's primary area of business; efforts were promptly launched to sell these operations onto third parties.<ref name="Observer" /> Shortly thereafter, it was announced that the company lost a lucrative contract to provide back-up services to its container leasing operations, which by then it had been running as a [[joint venture]] with [[GE Capital]]. These two negative headlines were seen as serious blows to the future of Sea Containers, which reportedly had accumulated debts adding up to $1.3 billion by May of that year.<ref name="Observer" />
*Hart Fenton: a naval architecture and marine engineering company, sold to Houlder in 2006<ref>[http://www.landseaairmagazine.com/2011/11/15/hart-fenton-company-ltd/ Hart, Fenton & Company Limited] ''Land, Sea & Air Magazine'' 15 November 2011</ref>▼
*Sea Containers Chartering▼
In response to these negative events, Sherwood promptly resigned from many of his companies, including Sea Containers.<ref name="Observer" /> He was replaced by turnaround specialist [[Bob Mackenzie (businessman)|Bob Mackenzie]], while Ian Durant became senior vice-president of finance.<ref name = "notmy independent2006">{{cite news |url = https://www.independent.co.uk/news/business/news/collapse-was-not-my-fault-says-sea-containers-boss-421041.html |title = Collapse was not my fault says Sea Containers boss |newspaper = [[The Independent]] |first = Danny |last = Fortson |date = 22 October 2006}}</ref> MacKenzie sought to reduce the business' high debt burden via further sales, which he viewed as critical to any prospective rebuilding of the core enterprise; these efforts led to the rapid divestiture of 14,000 containers amongst other company assets.<ref name="Observer" /> By July 2006, rumours were circulating that Sea Containers was preparing to sell GNER in an effort to avoid declaring [[bankruptcy]].<ref>{{cite news |first=Alastair |last=Dalton |title=Sea Containers 'ready to sell GNER' to avoid bankruptcy |url=http://business.scotsman.com/index.cfm?id=1036082006 |date=17 July 2006 |newspaper=[[The Scotsman]] |location=Edinburgh |access-date=17 July 2006 |archive-date=30 March 2007 |archive-url=https://web.archive.org/web/20070330152403/http://business.scotsman.com/index.cfm?id=1036082006 |url-status=live }}</ref><ref>{{cite news |first=Dan |last=Milmo |title=Ex-GNER chief says high bids threaten franchises |url=https://www.theguardian.com/business/2006/sep/27/transportintheuk.travelnews |date=27 September 2006 |newspaper=The Guardian |location=London |access-date=11 December 2016 |archive-date=9 March 2016 |archive-url=https://web.archive.org/web/20160309172838/http://www.theguardian.com/business/2006/sep/27/transportintheuk.travelnews |url-status=live }}</ref>
===Rail===▼
[[File:Hugh llewelyn 91 101 (6749175251).jpg|thumb|[[Great North Eastern Railway|GNER]] [[InterCity 225]] at [[London King's Cross railway station|London King's Cross]] in July 2007]]▼
*[[Great North Eastern Railway|GNER]]: a [[train operating company]] that commenced operating the [[InterCity East Coast]] franchise in April 1996. After winning a further 10-year extension when re-tendered in 2005,<ref>[https://www.theguardian.com/business/2005/mar/23/transportintheuk GNER pays £1.3bn to retain East Coast mainline] ''The Guardian'' 23 March 2005</ref> GNER ran into financial difficulties with Sea Containers handing back the franchise in December 2007.<ref>[http://news.bbc.co.uk/2/hi/business/6182027.stm GNER to surrender top train route] ''BBC News'' 15 December 2006</ref><ref>[http://www.railwaygazette.com/news/single-view/view/east-coast-franchise-handover.html East Coast franchise handover] ''[[Railway Gazette International]]'' 31 December 2007</ref> It also bid for the [[South Western franchise]] in 2001 and [[South Eastern franchise]] in 2006.<ref>[https://www.independent.co.uk/news/uk/home-news/coveted-franchise-operated-by-bermudan-company-633948.html Conveted franchise operated by Bermudan company] ''The Independent'' 17 October 2000</ref><ref>[https://web.archive.org/web/20040104233355/http://www.sra.gov.uk/news/20031222_ikf_bidders_selection.tt2 Green Light for High Speed Services for Kent - Four Bidders Selected for new Kent Franchise] Strategic Rail Authority 22 December 2003</ref>▼
Despite these activities, in early October 2006, Sea Containers announced that it was unlikely to be able to pay a $115 million (£62 million) [[Bond (finance)|bond]] that was due on 15 October. On 16 October, the company filed for [[Chapter 11, Title 11, United States Code|Chapter 11]] bankruptcy protection, at which point it reportedly had outstanding debts of $650 million with only $67 million of free cash remaining.<ref>{{cite news |url = https://www.theguardian.com/business/2006/oct/16/money |title = Sea Containers files for Chapter 11 protection |newspaper = [[The Guardian]] |date = 16 October 2006}}</ref><ref name = "notmy independent2006"/> Following this filing, Sherwood's role in the collapse, particularly his $2 million (£1 million) [[severance payment]] and $250,000 annual payout from his Sea Containers pension, was criticised; in response, he denied personal responsibility and attributed Sea Containers' fate to several factors, including elevated fuel prices, the [[7 July 2005 London bombings]], and incorrect assumptions in contract terms stipulated by the British government.<ref name = "notmy independent2006"/>
The company's container leasing business was conducted mainly through GE SeaCo, a joint venture with [[GE Capital]] formed in 1998. GE SeaCo was sold to the [[HNA Group]] for approximately $1 billion on 15 December 2011 and now operates as [[Seaco]].<ref>[http://www.seatrade-maritime.com/news/asia/HNA-completes-acquisition-of-GE-SeaCo.html HNA completes acquisition of GE SeaCo] ''Seatrade Maritime News'' 19 December 2011</ref>▼
▲On 6 November 2006, the [[Department for Work
==Other former activities==▼
*Sea Containers Property Services Ltd – property development, property asset management.▼
▲On 11 February 2009,
*The Illustrated London News Group (ILNG) – publishing▼
*Fruit farming – Sea Containers owned plantations in West Africa and South America.▼
==Operations==
*Fairways & Swinford – UK-based business travel agency▼
▲===Ferry services and related businesses===
* [[Sealink British Ferries]]: ferry services around the United Kingdom and Ireland. Acquired in 1984,<ref>{{cite news |title = Britain Is Selling Ferry Line |url = https://www.nytimes.com/1984/07/19/business/britain-is-selling-ferry-line.html |access-date = 24 October 2023 |newspaper = The New York Times |date = 19 July 1984}}</ref> most Sealink operations were sold to [[Stena Line]] in 1990.
▲* [[Isle of Man Steam Packet Company]]: fast and conventional services in the [[Irish Sea]]. Acquired in 1996, sold in 2003.
▲* [[Silja Line]]: fast and conventional services in the [[Baltic Sea]]. In June 2006,
▲* [[Belmond (company)|Orient-Express Hotels]]: (25% shareholding) sold in 2005<ref name=Observer/>
▲* [[SeaStreak]]: following the Sea Containers bankruptcy of 2006, this operation was sold to New England Fast Ferry<ref>
▲* SNAV-Hoverspeed: a joint venture with Italian ferry operator [[SNAV]]. Used the former ''Seacat Danmark'' as ''Zara Jet.''
▲* [[Aegean Speed Lines]]: a joint venture in Greece with the Eugenides Group. The service uses the former ''[[HSC High Speed Jet|Hoverspeed Great Britain]]'' as ''Speedrunner 1'', which operated in the [[English Channel]] and held the [[Hales Trophy]] and [[Blue Riband]] for the fastest crossing of the North Atlantic.
▲* [[Hoverspeed]]: English Channel services ceased in 2005<ref name=Observer/>
▲* [[SeaCat]]: ([[Belfast]] & [[Troon]]).
▲===Other maritime===
▲* Hart Fenton: a naval architecture and marine engineering company, sold to Houlder in 2006<ref>
▲* Sea Containers Chartering
▲[[File:Hugh llewelyn 91 101 (6749175251).jpg|thumb|[[Great North Eastern Railway|GNER]] [[InterCity 225]] at [[London King's Cross railway station|London King's Cross]] in July 2007]]
* [[Venice-Simplon Orient Express]]: Luxury train service
▲* [[Great North Eastern Railway
==
▲The company's container leasing business was conducted mainly through GE SeaCo, a joint venture with [[GE Capital]] formed in 1998. GE SeaCo was sold to the [[HNA Group]] for approximately $1 billion on 15 December 2011 and now operates as [[Seaco]].<ref>
▲=== Other former activities ===
▲* Sea Containers Property Services Ltd – property development, property asset management.
▲* [[The Illustrated London News]] Group (ILNG) – publishing
▲* Fairways & Swinford – UK-based business travel agency
==References==
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[[Category:Companies formerly listed on the New York Stock Exchange]]
[[Category:Companies that filed for Chapter 11 bankruptcy in 2006]]
[[Category:Defunct companies of Bermuda]]
[[Category:Shipping companies of Bermuda]]
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[[Category:Transport companies established in 1965]]
[[Category:1965 establishments in Bermuda]]
[[Category:2009 disestablishments in Bermuda]]
[[Category:Transport companies disestablished in 2009]]
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