Receivers implement Riviera restructureDOWNLOAD
The Receivers and Managers of Riviera, Deloitte partners Chris Campbell, Vaughan Strawbridge and Richard Hughes, have today implemented the restructure of the Coomera production facility.
As foreshadowed at the time of their appointment on 8 May, the Receivers have started the toughest part of the restructure of the manufacturing facility and head office at Coomera Qld. The business’ extensive dealer network continues as normal.
Service and care to Riviera customers is unaffected by the restructure.
“Riviera will now be in better shape to weather the current economic conditions and to meet the ongoing demand for quality Riviera products,” says Mr Campbell. “Under the new structure, production and ongoing trade with suppliers will continue, including the orders placed during last week’s Sanctuary Cove Boat Show.”
Mr Campbell confirmed that the restructure is not expected to cause delays in boat production for Riviera clients.
Effect on the workforce
At the general employee meetings held by Receivers at the commencement of the receivership Mr Campbell advised staff that restructure planning would take at least a couple of weeks. He also informed staff that the receivers’ team and key management were working on the restructure and that the necessary change would result in head count reduction.
As a result, of a total of 445 permanent full time staff, approximately one third of staff have today been made redundant.
While wages for these staff will be paid to date, Mr Campbell expressed his regret about not having the funds within the business to pay employee entitlements.
“The staff have continued to operate on a business as usual basis under enormously difficult circumstances. The Receivers and Managers have been grateful for patience shown by staff while we have thoroughly investigated the options available,” he said.
For further information about Riviera, please refer to these previous two media releases:
NB: For further general information on the voluntary administration process, please refer to: Australian Securities and Investments Commission website.
Creditors should refer to the