Mosaic Manufacturers: KPMG to close Rivers clothes retailers | Enterprise & Market Information
Extra than 130 Rivers clothes shops will close throughout the nation after a purchaser couldn’t be discovered for the collapsed business.
It’s the top of the road for a model that had opened its first store on Sydney’s George Avenue in 1983 — and with a historical past tracing back to the Paddles household in 1863.
However the once-prominent outlet has grow to be the latest sufferer within the collapse of mum or dad company Mosaic Manufacturers.
So too will the 650 employees who will lose their jobs, including to 480 colleagues in current weeks.
KPMG and FTI Consulting had been purchasing Rivers round to consumers, but couldn’t lock in a rescue deal. Remaining shops will shut by mid-April.
The writing was on the wall final yr when lender Hilco put KPMG’s David Hardy, Gayle Dickerson, Ryan Eagle and Amanda Coneyworth into ASX-listed Mosaic as receivers. FTI was appointed by Mosaic’s board.
“Unfortunately, a sale of Rivers was not able to be achieved,” Mr Hardy mentioned in a assertion.
“This means the receivers have made the difficult decision to wind down this iconic Australian brand.
“The receivers would like to thank the Mosaic and Rivers employees who have all worked tirelessly during this difficult period, as well as Rivers’ loyal customer base who have continued to support the brands”.
Two key Mosaic subsidiaries nonetheless have the for-sale signal hanging — Millers and Noni B.
It was unclear on Tuesday whether or not talks have been below method with potential consumers for the 2 retailers, or how superior any discussions may be.
The shutdown of Rivers follows the closure of 160 shops throughout Mosaic’s crumbling empire in current weeks, together with all Katies shops.
Retailers have been battered in the price of residing squeeze, with clothes and footwear gross sales up solely 0.7 per cent yr on yr. About 400 retail companies have gone below nationally since July.
Mosaic’s issues look like more in depth, nevertheless. The company was combating for survival for years and dealing on restructuring plans earlier than financiers pulled the rug.
Property have been inadequate to cowl money owed on the finish of June 2023 — a scarcity of about $60 million. Mosaic additionally copped a Federal Courtroom run-in with the Australian Competitors and Shopper Fee over marketed supply occasions.
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