Rivers tipped to return to profit

Troubled clothing chain Rivers is being tipped by its owner, Specialty Fashion, to return to profitability within two years.

The company behind the loss-making clothing chain Rivers says it is on track to become profitable within two years.

Specialty Fashion chairman Geoff Levy says the retailer has begun to see a turnaround in the fortunes of the Rivers brand after a major revamp program which involved improving its products and stores to help win back customers.

"We expect that we will, at least, be able to contribute to group profitability in the next 12 to 24 months," he told shareholders at Specialty Fashion's annual general meeting on Tuesday.

Rivers suffered a $21.6 million loss last financial year,