Australian fashion retail giant enters voluntary administration

Nathan Jolly

October 28, 2024 3:22

Australian fashion retail giant enters voluntary administration

The parent company of Australian fashion brands Katies, Millers, Noni B, and Rivers has entered voluntary administration, after informal restructuring attempts failed.

Mosaic Brands has appointed KPMG’s David Hardy, Gayle Dickerson, Ryan Eagle and Amanda Coneyworth as receivers and managers to work alongside administrators from FTI Consulting.

Mosaic owns brands Noni B, Rivers, Katies, Rockmans, Millers, Autograph, Beme, Crossroads, and W. Lane. It runs 804 stores, nationally, and has approximately 7.8 million online members.

“Over the past few weeks, Mosaic’s Board and executive team have progressed plans to restructure, re-align and simplify Mosaic’s operations, as previously announced to the market,” a note filed with the ASX on Monday reads.

“These initiatives have included rationalising the Group’s Brand and store portfolio and focusing on key growth brands, reducing costs and improving Mosaic’s working capital position.

“This process has involved discussions with a wide range of stakeholders, both locally and internationally, including Mosaic’s senior secured lender, suppliers, service providers, landlords and the ACCC.

“However, a small number of parties declined to support the restructuring proposal or negotiate a commercial outcome, and a commercially acceptable resolution could not be reached with the ACCC.

“Accordingly, Mosaic’s Board made the difficult decision today to appoint administrators.”

The ACCC launched Federal Court proceedings against Mosaic Brands in March, alleging the fashion retail group failed to meet advertising delivery timeframes on several hundred thousand occasions.

The group will continue to trade, and “management intends to progress its brand rationalisation and wider restructuring plan, and to focus on the key Christmas and holiday trading period”, with the board reiterating its belief “that the business has a long-term future”.