Will Rivers be leaving Deniliquin?
That’s the question being asked after the company behind the store went into voluntary administration this week.
Announced via the Australian Stock Exchange on Monday, Mosaic Brands Limited said the decision was made after failed attempts to “informally restructure its operations”.
This restructure was to include “rationalising the Group's Brand and store portfolio and focusing on key growth brands, reducing costs and improving Mosaic's working capital position”.
The Pastoral Times reached out to Mosaic Brands to specifically query the short term and long term impacts of the voluntary administration and any potential restructure on the Deniliquin store.
A response was not received at the time of going to print.
A business update from the company listed on the ASX on September 30, however, suggests the Rivers store may continue into the future in a different format.
The update revealed that Mosaic was proposing to drop the Rockmans, Autograph, Crossroads, W.Lane and BeMe brands, instead investing more in the core brands of Millers, Noni B, Rivers and Katies.
Deniliquin’s Rockmans store was merged into Rivers when it opened in Cressy St in 2021, in a building left empty by Target.
Building owner Lester Wheatley said Mosaic spoke with him directly after the September update and indicated the Deni store would be safe.
But Mr Wheatley said the administration process creates uncertainty.
“My previous discussions with the group, only a few weeks ago, indicated they were very happy with being in Deniliquin and Rivers in Deni would be retained by the business.
“I was also asked to draw up a new lease agreement, as the current agreement was coming to an end.
“Now they are in administrations, it is hard to know what might happen in all the number crunching.
“I would say it is now imperative for people to support the Deni Rivers store. If we don’t it could go the same way as Target.”
Wesfarmers closed the Deni Target store in March 2021, almost a year after announcing the decision. In some areas, the Target stores were made into Kmart hubs.
Rivers is one of few remaining clothing businesses in the town.
Mosaic Group has said trade would continue as normal while the administration process takes place.
Directors have appointed Vaughan Strawbridge, Kathryn Evans, Kate Warwick and David McGrath of FTI Consulting as joint and several administrators.
Mosaic's senior secured lender has appointed KPMG's David Hardy, Gayle Dickerson, Ryan Eagle and Amanda Coneyworth as receivers and managers to work with administrators on the restructure process.