This article is from the Australian Property Journal archive
All 80 Katies clothing stores and another 80 stores across the Millers, Rivers and Noni B brands will be shuttered, and nearly 500 employees will lose their jobs as receivers continue their search for a buyer for collapsed ASX-listed retailer Mosaic Brands.
“The decision to undertake the store consolidation program has not been taken lightly,” receivers KPMG said in a statement yesterday.
“Since the date of appointment, the receivers and managers have stabilised operations, continuing to trade the businesses of the group while engaging with suppliers to release stock for the crucial Black Friday and Christmas trading periods.”
Around 480 employees will be out of a job as the 160 stores shut their doors by mid-January.
Mosaic entered voluntary administration at the end of October with debts nearing $250 million, just weeks after it announced the end of five of its brands, leaving thousands of jobs at risk and hundreds of shops empty.
At that time, the company had more than 2,700 employees and 700 stores across the country. At the end of September it said it would “rationalise” its brand portfolio as part of “driving simplification across the business and focusing resources”, closing the Rockmans, Autograph, Crossroads, W.Lane and BeMe brands, including all stores and websites.
KPMG said that following submissions of non-binding indicative offers in late November, short-listed parties have been undertaking due diligence on the group.
“Due to the ongoing due diligence and discussions with interested parties, FTI Consulting have advised parties that the deadline for binding offers has been extended until end of December 2024.”
In August of last year, Mosaic said it intended to open 40 new Rivers “mega stores” in FY24, mostly in regional areas, after it swung to a $17.1 million earnings profit. It had slashed its store network by 148 sites in net terms during the period, following on from its shuttering of 250 stores during the pandemic. That period saw major landlord Scentre lock Mosaic Brands out of 129 of its own stores after a rent payment stoush.
