“Business as Usual” for Riviera
Receiver and Manager of Riviera, Chris Campbell, advised the employees and suppliers of Riviera yesterday that the company is continuing to operate on a “business as usual” basis.
Mr Campbell said that he is looking to continue to trade the business while the Receivers and Managers investigate the financial affairs and develop a restructuring plan over the next few weeks.
Commonly Asked Questions:
What is the first priority of the Receivers and Managers?
Mr Chris Campbell said that the first priority of the Receivers and Managers has been 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.
Are there plans to sell the business?
Mr Campbell said that expressions of interest had already been received; it is likely that the Receivers will test the market for interested parties early in the Receivership. 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? Was it the downturn in the market?
Mr Campbell said the appointment of receivers followed a request from the Directors that an appointment be made. Mr Campbell confirmed that the Riviera business 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,” he said.
How many staff are affected?
The company currently has approximately 550 employees.
Boat show season
Mr Campbell confirmed that the Receivers and Managers intend to participate in the Sanctuary Cove International Boat show next week. “Boat shows are an important industry event for all manufacturers, customers and dealer networks,” he said. “Riviera will remain as the largest boat exhibitor at the show. On show will be the new Riviera 70 Enclosed Flybridge, as well as the launch of the new 5800 Sport Yacht.”
Will warranties still apply?
Mr Campbell said that warranties will continue during the Receivership trading period. Customers should bear in mind that warranty is not only provided by Riviera and dealers but also is supported by the original equipment suppliers. In addition the dealer support network and mobile servicing remains available.
Who are the main creditors and how much is owed? How much is owed to the employees? What are the full trading names of the companies affected?
Mr Campbell stated that it is too early in the appointment to provide this information.
Where do I find out more information?