Riviera Officially Withdrawn from Sale

by Stephen Milne on 10 Apr 2010 Australia's largest and most awarded pleasure boat builder, Riviera has today announced that the company's bankers have officially closed the sale process of the business.

Over the past six months a number of domestic and international parties have been in discussions with the Receivers and Managers regarding the possible purchase of Riviera. After extensive consideration, the secured debt holders have elected to formerly withdraw the business from the sale process electing over the medium term to continue to rebuild the business.

'Over the last eleven months 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' commented Riviera Chief Executive Officer, 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. In the last eleven months over 100 new Rivieras have been sold by our global dealer network giving a weekly sales un rate of two-and-a-half new boats per week. In total retail value, this represents over (AUD) $102 million is sales.

'For the first quarter of this calendar year, we have achieved a 35% growth in sales over the same period last year. What is really pleasing is that we are receiving contracts and deposits from our dealers in the America's and Europe, indicating that a global recovery is slowly on its way.

'We have also signed several new international dealers this calendar year in both the US and Europe which is a very encouraging sign for us as the global boating industry sees us as a force that is on the return with a clearly segmented and strategically growing model line-up.

'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.

'Our new model development plan has a five year vision with multiple new model releases planned for each year. For 2010, the first of these new models, a 43 Open Flybridge with IPS will have its world premiere at Sanctuary Cove 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. 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 staff is paid their entitlements and funds are paid to a deed fund for distribution to creditors. This is now well progressed.

'With real increases in sales volume, new model releases underway, a growing workforce and expanding international dealer network, the future for Riviera looks very exciting indeed. Added to these indicators, the public commitment of support by our backers over the medium term further enhances our abilities to maximise the return to confidence in the luxury boating market.'

Riviera offers 20 different models from 36 to 85 feet across four model series Flybridge, Sport Yacht, Offshore Express and Motor Yachts.

For more information, please go to www.riviera.com.au