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The collapse of fashion retailer Mosaic Brands (ASX: MOZ) has claimed another iconic Australian label with the announcement today that receivers are closing down all Rivers fashion and footwear outlets in Australia and New Zealand, leading to the loss of about 650 jobs.
The closure of Rivers, which was founded in 1979 but has origins as far back as 1863, follows the failure of the receivers to find a buyer for the business.
The Rivers chain, which was founded as a boot manufacturer and wholesaler by Joe Paddle and his sons in 1863, currently has 136 stores – all of which will be closed by mid-April.
The move is the latest fallout from the appointment of KPMG partners David Hardy, Gayle Dickerson, Ryan Eagle and Amanda Coneyworth as receivers to Mosaic Brands in October last year, in tandem with the appointment of voluntary administrators by the company.
Prior to receivership, Mosaic Brands had operated about 700 stores across nine brands including Rockmans, Autograph, Katies, Millers, Noni B and W.Lane. The group has been struggling under the pressure of a weak consumer environment and rising costs for more than a year.
Ahead of appointing voluntary administrators in October, Mosaic revealed it was exiting the Rockmans, Autograph, Crossroads, W.Lane and BeMe brands, including all stores and websites.
Early last month, the receivers announced plans to close the group’s 80 Katies stores, ending a near 70-year history for the fashion retailer in Australia.
Despite efforts to sell Rivers, the receivers have today revealed they could not find a buyer for the business.
“This means the receivers have made the difficult decision to wind down this iconic Australian brand,” says receiver and KPMG Turnaround & Restructuring Partner David Hardy.
“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.”
The timing of the store closures for Rivers will vary, depending on stock levels and “sell through”.
“Sale events and promotions will be run in all stores and the receivers encourage customers to visit their local store or the ecommerce site while stocks last,” say the receivers in a statement.
Rivers was founded in 1863 as a boot manufacturer at Charlton in north-west Victoria, but moved to Ballarat in 1960.
The gold town has become synonymous with the Rivers brand which was born in 1979 and opened its first store in Sydney in 1983.
Rivers was initially a partnership between the Paddle family and footwear and clothing label Diana Ferrari at nearby Sebastopol, with the brand initially wholesaling products to Grace Bros, Myer, David Jones and Betts.
The Rivers business was acquired by Specialty Fashion Group in 2013 and then absorbed by Noni B, which later changed its name to Mosaic Brands.
With Katies and Rivers gone, the Mosaic Brands group’s remaining fashion business are Millers and Noni B which continue to trade.
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