Homewares retailer Moss River goes into voluntary administration again

Homewares retailer Moss River goes into voluntary administration again
Homewares retailer Moss River goes into voluntary administration again

Bedding and homewares brand Moss River has collapsed into voluntary administration with 65 creditors owed more than $2.6 million, and three stores quickly closed.

It is just two years since the business first fell into the hands of administrators in July 2015.

BDO partners Andrew Sallway and James White were appointed last month as administrators to Fineline Home Products Pty Ltd, which operates eight Moss River stores and an online store.

It employs around 40 people, mostly along Australia’s east coast.

The 39-year-old business sells linen and homewares items.

It previously went into administration in 2015 when it was then owned by an entity called Residential Homewares.

Administrator Andrew Sallway told the SmartCompany website challenging retail conditions led to the latest voluntary administration for the retailer.

The closure of the three Moss River stores were at Hyde Park in South Australia, Hawksburn in Victoria and Mona Vale in New South Wales.

The Moss River online store was described by Sallway as “easily the best revenue generator” and the best performing asset in the group.

Moss River has approximately 65 creditors, and BDO says on first estimates these parties are owed $2.6 million.

Sallway says the search for a suitable buyer for the business will continue.

Retail expert at Queensland University of Technology associate professor Gary Mortimer noted the next few years are likely to be tough for small retailers in the homewares space.

The discount department store market is generating one fifth of its sales from homewares, according to latest IBISWorld data, with discount grocer Aldi recently making a move into the increasingly crowded space.

 

Tags: 
Retail Property Moss River

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