The owner of the Rivers Australia chain will appear in court on Wednesday in connection with the charges of indecent assault filed against him by a former employee.

The Melbourne Magistrates Court is hearing the case between Philip Harry Goodman, 54, and Sallyanne Robinson, 30, after the Victoria Police served the court summon on the former.

Robinson sued Goodman in September accusing him of sexually assaulting her in Hawthorn in October 2009 by grabbing her breast while she was driving.

She also claimed that Goodman made unwelcome sexual advances on her during her employment at Rivers from September 2009 until July last year, including asking her to pretend as his wife or girlfriend during product sample purchase and calling her "honey bun."

Goodman also asked her to go to lunch together, she claimed.

Goodman had denied all the allegations and said the woman has long-term mental health issues, according to Sydney Morning Herald. He also said Robinson had alcohol abuse problem and insisted on modeling underwear in front of him but never touched her breasts or bottom.

The retail tycoon declined to comment further saying the case is already in court.

Robinson also denied Goodman's allegations.

Rivers Australia has 150 stores nationwide.