Death of an icon - Riviera sale likely

Written on the 6 July 2009

The spectacular $350 million sinking of luxury boat builder Riviera in May this year resulted in hundreds of lost jobs. The compnay has also dropped its GB and Princess brands.

The receiver Chris Campbell (Deloittes), who is still conducting a review of the company, has not ruled out further job losses. Already its workforce has been slashed from 1200 to 400 in the past year. Workers last week declined an offer of a five-year wage freeze. So where to from here? Gold Coast Business News shines some light on the situation.

What was the first priority of the receivers and managers?
To turn the supply chain back on, reassure employees and customers of the intention to continue to trade and to reassure customers that the network of Australia’s largest luxury boat building company is still up and running.

Has this been achieved?
No, although sales of a round $200 million were achieved at the Sanctuary Cove International Boat Show.

Has the business been sold?
Expressions of interest have been received. However given the current economic climate, it is likely that the best return to creditors is likely to come from a restructure and turn-around of the operations of the business rather than an immediate sale.

What brought about the appointment of the receivers?
The appointment of receivers followed a request from the directors that an appointment be made. Riviera has been significantly impacted by a high level of debt, as well as the current economic climate.

“The company has seen a downturn in demand for its boats over the last six to twelve months which appears to be in line with the global luxury boat industry. However, there remains a solid pipeline of demand for these best-in-class Riviera products,” says receiver Chris Campbell.

How many staff will be affected?
The company currently has around 400 employees after a further 150 were sacked last month. More can expect to lose their jobs under the restructuring process.


Latest News

COCHLEAR R&D INVESTMENT DRIVES NEW PRODUCTS AND BOOSTS PROFIT AND REVENUE

COCHLEAR (ASX: COH) has boosted its 2017 full year net profit by 18 percent to $223.6 million and has forecast furthe...

WESFARMERS BOOKS BUMPER PROFIT BUT SUPERMARKET WAR HITS COLES' BOTTOM LINE

SUPERMARKET giant Coles has posted its biggest slide in earnings since it was acquired by Wesfarmers (ASX: WES) 10 ye...

TREASURY WINES UNCORKS SWEET $269M PROFIT DESPITE INVENTORY WOES

REVEALING the fruits of its past year of labour, Treasury Wine Estates (ASX: TWE) has posted a 55 per cent increas...

TATTS GROUP POSTS PROFIT AND REVENUE DROP ON FEWER JACKPOTS AND BAD WEATHER FOR RACING

TATTS Group (ASX: TTS) has posted a full year net profit loss of 5.7 percent and a revenue decline of 8.4 per cent as...

Related News

WESFARMERS BOOKS BUMPER PROFIT BUT SUPERMARKET WAR HITS COLES' BOTTOM LINE

SUPERMARKET giant Coles has posted its biggest slide in earnings since it was acquired by Wesfarmers (ASX: WES) 10 ye...

ANALYSTS PREDICT WHAT AUSSIE LIVING IS LIKELY TO BECOME IN THE NEXT CENTURY

AS THE Australian population continues to grow, analysts are predicting what the country is likely to look like wi...

SEVEN WEST REPORTS MASSIVE LOSS AND CUTS CEO TIM WORNER'S PAY PACKET BY $450K

SEVEN West Media (ASX: SWM) has posted a full-year loss of $744.3 million and cut CEO Tim Worner's pay packet by ...

HOW MAKING MISTAKES AND PASSION SCORED WEIGHT LOSS PARTNERS A DEAL WITH SHARK TANK'S JANINE ALLIS

THEY partnered up to provide a scientific and targeted approach to dieting, and Kate Save and Geoff Draper cut Sha...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter