Riviera no longer for sale...

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Riviera no longer for sale...

Industry News

The Australian motorboat builder’s secured creditors have elected to continue rebuilding the business in the medium term rather than sell it. Its recovery has been good; the run rate is presently 2.5 boats a week.

APRIL 2010

“Our bankers have been impressed with our performance despite the prevailing market conditions and the positive gains made as a direct result of the restructuring process” says Riviera CEO, John Anderson. “Our focus is now firmly to build the business and make it even stronger. The value that has been created in the business over the last eleven months has clearly given our backers the confidence that as the market continues to return, so too will our sales and profitability... We are tracking ahead of our business plan and sales are certainly above all of our expectations. Since we went into receivership over 100 new Rivieras have been sold by our global dealer network giving a weekly-sales run rate of two-and-a-half new boats per week. In total retail value, this represents over A$102 million in sales... For the first quarter of this calendar year, we have achieved a 35 per cent growth in sales over the same period last year... Right now we have 350 people on site building boats at our Coomera, Gold Coast facility and we are actively recruiting new staff as we slowly ramp-up production to meet the growing global demand.
Riviera is also progressing with a five-year model development plan. The first of these new models is a 43 Open Flybridge with IPS, which will get its world premiere at the 2010 Sanctuary Cove International Boat Show in May.
“Part of the process of re-building the business is creating a business platform that will allow us to take Riviera out receivership,” says Anderson. “Before this can be affected, we need to complete the ‘Deed of Company Arrangement’, which will see Riviera come out of Administration as soon as all the former employees are paid their entitlements and funds are paid to a ‘deed fund’ for distribution to creditors. This is now well progressed.”
Riviera offers 20 different models from 11-26m (36-85ft) across four model series: Flybridge, Sport Yacht, Offshore Express and Motor Yachts.
For more, www.riviera.com.au

© Phil Draper