The management of Ferretti Brazil have applied for bankruptcy protection, after revealing more than £11m of debt

Ferretti Group Brazil is heading towards bankruptcy, according to a report in local publication UOL.

The company, which represents the Italian manufacturer Ferretti Group in Brazil, has filed for bankruptcy protection.

Ferretti Brazil currently has R$48m (£11m) of debt and is compiling a plan to repay this, with customers asked to become partners in the construction of new vessels.

Marcio Christiansen, executive director of Ferretti, told UOL: “Bankruptcy protection for the company was a tough decision, but [also a] brave [decision] in order to save the company and to have the time to organise ourselves.”

In 2012, Ferretti Brazil employed 670 people and although 67% of the workforce has been laid off since then, the company still managed to deliver 14 boats in 2014.

Ferretti Brazil was set up in 2010 and at the time Lamberto Tacoli, chief sales & marketing officer at Ferretti Group, said: “We are finding there is huge potential for development in Brazil and are confident that this venture will also result in further growth for our brands over the next few years.”