Rivers, once one of Australia’s iconic fashion and footwear retailers, has announced the closure of all its 136 stores across Australia and New Zealand, resulting in approximately 650 job losses. The news follows the inability of the receivers handling its parent company, Mosaic Brands, to locate potential buyers for the distressed label.
Founded way back in 1863 and starting as a boot manufacturer, Rivers has navigated the retail waters for decades. Despite its storied past, including the opening of its first store in Sydney back in 1983, the brand is now facing its end. "This means the receivers have made the difficult decision to wind down this iconic Australian brand," stated David Hardy, one of the partners at KPMG, the firm appointed as receivers.
Mosaic Brands, which had about 700 stores spread across various subsidiary brands including Rockmans, Autograph, and Katies, made headlines last October when it appointed voluntary administrators due to debts exceeding AUD 249 million. The financial woes were compounded by increased operating costs and shifts in consumer interest, marking troubling times for the retailer since the onset of economic challenges over the past year.
Earlier efforts to offload several of its brands did not yield success. The fate of Rivers joins the tragic saga of other brands under Mosaic, including the successful closures of Rockmans and Autograph, among others. Each of these closures paints a broader picture of the retail industry grappling with shifting market dynamics and economic pressures.
Following the appointment of KPMG as receivers late last year, the group has struggled to maintain its various brands. Although Rivers' closure is set to occur by mid-April 2024, the gradual winding down process has already started, with decisions on when each store will close based on stock levels.
The distressing news of the closures also reverberates through the local job market, as around 650 staff members face unemployment. The closure reflects the retailer's long history and loyal following, which Hardy acknowledged during his statements. "The receivers would like to thank the Mosaic and Rivers employees who have all worked tirelessly during this difficult period," he said.
While liquidation events are scheduled to manage stock clearance, disposition of the additional brands such as Millers and Noni B, the few remaining brands under Mosaic, is still unresolved. KPMG partners have expressed their hopes for retaining some operational aspects of these brands, yet there are no guarantees of success.
The ripple effect of this retail closure extends beyond employees and consumers. Several suppliers and manufacturers have also been affected, with some vendors reporting outstanding payments running to millions. No doubt, the financial burden of unpaid debts will encourage severe repercussions for many small to mid-sized businesses reliant on Mosaic's operations.
Notably, the domestic retail scene has seen similar casualties; the recent closure of another store within the Geelong CBD emphasizes this worrying trend. This downfall of once-thriving enterprises demonstrates the increasing challenges retailers face amid the current economic environment.
The recent developments have sparked conversations not only about Rivers' fate but also about the broader viability of traditional retail brands. With changing consumer behaviors leaning more heavily toward online shopping options, legacy retailers like Rivers find it increasingly harder to compete.
The pain felt within the communities touched by these closures serves as yet another indicator of the shifting retail ground as more brands succumb to market pressures. The receivers have promised to execute closures professionally and ethically, aiming to minimize disruption for staff and customers during this transition.
Looking forward, how the surviving brands of Mosaic will navigate these treacherous waters remains to be seen. The challenges facing Millers and Noni B could provide insight for the entire industry, as retailers grapple with the stark realities of economic conditions. The unfortunate story of Rivers serves as both a cautionary tale and reflection of the retail industry's volatile state.
Despite the downturn, the legacy of Rivers will not soon be eclipsed, as it stands as a reminder of the changing times and the relentless evolution of consumer culture.