Luxury boat builder Riveria to be sold

25 May 09

Australia's embattled luxury boat builder Riviera will soon be on the market with more jobs likely to go. The Gold Coast company and ManufactureLink supplier, which employs 550 people, went into voluntary receivership on May 8.

The news of its sale was confirmed in a personal letter to boat owners in Riviera online magazine, signed by CEO John Anderson and receiver and manger Deloitte's Chris Campbell.

"We wanted to write to you personally this week to reassure you about the future of Riviera and your new boat," Anderson said in the letter.

"Following the restructure process, the receivers and managers intend to sell Riviera as a going concern and thus preserve what has become over the last 29 years, an iconic Australian boating company with real international presence."

But the letter, which says it's "business as usual at Riviera" provides no reassurance to the company employees.

Deloitte team have already begun briefing staff, it said.

"The purpose of the receivership is to continue trading and to restructure the business in order to survive the current economic climate," Anderson said.

"The restructure is to allow Riviera to continue to design, manufacture and distribute the acclaimed range of Riviera boats."

But for those who had placed an order for a luxury boat - there was good news.

"We are pleased to confirmed that deposits previously paid to Riviera for boats currently under construction or about to commence build will be applied to those boats for the benefit of the Riviera customer".

New deposits would be the personal responsibility of the receivers, he said.

Warranty and other services would also continue during the receivership and after the sale.

Riviera operates a state-of-the-art boat building facility at Coomera on the Gold Coast and exports to more than 30 countries.

In January, Riviera shed 117 of its Gold Coast staff in the wake of the global downturn, and in 2008 it cut more than 300 staff from its Coomera headquarters.

Source: Australian Associated Press

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