Rivers Shuts Down As Mosaic Brands Fails To Find Buyer After Months Of Search

Australia's iconic clothing and footwear retailer Rivers has announced it will shut down all 136 of its stores nationwide, after its parent company, Mosaic Brands, failed to find a buyer despite months of attempts by receivers.

The closure, which will result in the loss of 650 jobs, marks the latest chapter in the company's ongoing financial struggles, News.com reported.

Mosaic Brands, which went into administration last year, has faced severe financial hardship. Several of its retail chains were already shut down during the administration process. Despite efforts from receivers, including a thorough search for a buyer, no buyer materialized for Rivers.

"Unfortunately, a sale of Rivers was not able to be achieved," Mosaic's receiver KPMG's David Hardy said. "This means the receivers have made the difficult decision to wind down this iconic Australian brand."

On Thursday, the company confirmed the stores would begin closing in April.

Receivers announced that the stores would be closed at different points, depending on stock levels, 9News reported.

Collapse of a retail icon

Rivers' closure marks the seventh brand in the Mosaic group to be axed after the other retailers like Rockmans, Autograph, Crossroads, W Lane, BeMe, and Katies.

The company's troubled financial state began to unfold when it entered receivership in October 2023, owing AU$249 million to 171 creditors and an undisclosed amount to around 300 employees.

Rivers, which traces its origins back to 1863 as The Paddles Operation, was once a key player in Australia's retail landscape. The company rebranded to Rivers in 1979 and went on to open its first retail store in 1983. Thirty years later and after growing to over 60 stores, the brand was acquired by Specialty Fashion Group.

In mid-January, Mosaic closed a combined 160 stores across Katies, Millers, and Rivers, leading to 480 employees losing their jobs. The closures come as part of a broader strategy to scale back operations and minimize losses. Since last October, hundreds of stores across nine brands have been shut down since Mosaic entered receivership.

The company's financial troubles began to unravel in October 2023 when it went into receivership. At that time, Mosaic Brands owed $249 million to creditors and an undisclosed amount to workers.