Moss River, a homewares retail chain operating since 1978 that specialises in manchester and premium linen, has again found itself in hot water with investors.
Initially collapsing into voluntary administration back in 2015 when previously owned by Original Residential Homewares Pty Limited, Fineline Home Products Pty Ltd stepped in at the time and saved Moss River from insolvency. However, with current competitive conditions and declining sales figures causing issues industry wide, Moss River is again set to join a long list of retailers shutting up shop.
Seeking to recoup their investment, in July this year, creditors Canberra Centre Investments Pty Ltd and QIC Limited applied for a Wind Up Order through the Federal court of Australia, forcing the struggling retailer into administration. Following this court action, it has been announced that financial advisory firm BDO have been appointed as Administrators of the besieged retail chain and they have been in place since the 4th of September 2017.
Andrew Sallway and James White of BDO are now tasked with finding a buyer for the struggling business, and are now calling for expressions of interest in the business and its assets, which includes the retail outlets and stock, as well as the business’s intellectual property including its brand name.
“We are currently continuing to trade with a view to sell the business,” Mr Sallway said.
The failure to find a buyer for Moss River will place it among the closure of retailers such as Topshop and Topman, Payless Shoes, David Lawrence, Marcs, Pumpkin Patch, Herringbone, Howards Storage World, Rhodes & Beckett that that have already collapsed throughout the course of 2017.
Mr Sallway also commenting that “since BDO’s appointment three stores have closed, Hyde Park SA, Hawksburn VIC and Mona Vale NSW, however there is no intention to close further stores at this time”.
Operating in Victoria, NSW and Queensland, Fineline Home Products Pty Ltd, which trades as Moss River through eight retail stores in Australia employs approximately 40 people across their business.
The first meeting of the creditors of the Company was held on Thursday the 14th of September 2017.