The bankruptcy was requested by Seaway Design boss Bogdan Topič, precisely because the production arm is in administration already.

While the majority of employees have reportedly already left Design, all 49 workers at Seaway Yachts received notices in early March.

It is unclear whether the bankruptcy proceedings will allow the stories firm to survive given how interwoven the two firms are.

Reports suggest Seaway has no shortage of orders, but it has been brought to its knees by crippling debt.

The two companies owe EUR 16m to banks, EUR 7m to suppliers and close to EUR 2m to employees.

Seaway started life in 1983 as Studio J&J, founded by the brothers Japec and Jernej Jakopin.

In 2001 asset management firm KD joined as shareholder and the company expanded from design to own-brand production.

At its peak Seaway produced Shipman sailing yachts, Greenline hybrid yachts, and Skagen motor boats.

The company grew quickly until 2008, when the economic crisis caused a 70% decline in sales on the European boat market, forcing Seaway to sell a new shipyard in Italy with a huge loss.

The company's recovery strategy involved expansion to non-nautical segments of composite materials and penetration of markets beyond Europe, which required significant investment.

However, the enduring credit crunch cut off access to financing and the company faced liquidity problems that continued to deepen.