Riviera cuts more staff

Troubled Coomera-based luxury boat manufacturer Riviera has cut almost 160 more workers. This follows receiver Deloitte taking over earlier this month, and vowing to trade the company out of its financial woes.

A total of 157 staff members were fired on Monday (May 25) -- only 24 hours after Riviera reported strong sales and customer enquiries at the Sanctuary Cove International Boat Show.

The Gold Coast Bulletin reported that Deloitte held a meeting with the 500 staff to tell them of the latest cutbacks.

Deloitte partners Chris Campbell, Vaughan Strawbridge and Richard Hughes, told BoatPoint last week that service to both existing and new customers would be unaffected by the restructure they were planning.

Campbell says he believes the Queensland company is in good shape to weather the current economic conditions and to meet the ongoing demand for Riveria products.

"Under the new structure, production and ongoing trade with suppliers will continue, including the orders placed during last week's Sanctuary Cove Boat Show,'' Campbell says.

He confirmed that the restructure is not expected to cause delays in boat production for Riviera clients. Wages will be paid to the sacked workers, but Campbell expressed his regret at not having funds within the business to pay all employee entitlements.

"The staff  have continued to operate on a business as usual basis under enormously difficult circumstances," he says.

Riviera is believed to have accrued debts in excess of $300 million.

The latest round of sackings comes after 136 workers in August last year followed by another 117 in January.

Riviera is Australia's largest and most awarded luxury boat builder and has produced flybridge cruisers, offshore express models and sports yachts for the past 30 years.

In recent years the company has exported up to 50 per cent of its annual production and has built up network of dealers in more than 30 countries around the globe.