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Major Australian fashion retailer enters administration

Major Australian fashion retailer enters administration

Major Australian retailer Mosaic Brands has entered voluntary administration, putting thousands of jobs at risk.

The company — which is behind brands including Rivers, Katies and Millers — announced the move on Monday.

The news comes after the fashion retailer last month said it was axing five of its businesses and closing more than 200 stores to simplify operations and reduce costs.

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The company earlier said all stores and websites for Rockmans, Autograph, W.Lane, Crossroads and BeMe would be wound down to simplify the business and allow it to focus on “five core growth brands” — Millers, Noni B, Rivers, Katies and its standalone online Mosaic marketplace.

Rockmans, Autograph and W.Lane have a combined 231 stores, according to Mosaic’s 2023 annual report. BeMe Brands and Crossroads are pure-play digital brands.

However, on Monday, the parent company said voluntary administration was now the “most appropriate way to restructure”.

“Over the past few weeks, Mosaic’s board and executive team have progressed plans to restructure, realign and simplify Mosaic’s operations, as previously announced to the market,” it said in a statement to the Australian Securities Exchange.

“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.

“The group’s leadership received the support of a significant majority of its commercial partners and was confident that the restructure would be in the best interests of all stakeholders.

“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.”

Vaughan Strawbridge, Kathryn Evans, Kate Warwick and David McGrath of FTI Consulting have been appointed as joint and several administrators.

KPMG will work alongside administrators to oversee the company’s trading operations.

Mosaic plans to continue to trade and continue with its restructure, and will “focus on the key Christmas and holiday trading period”.

The company operates 573 stores across the Millers, Rivers, Noni B and Katies brands, according to the report.

“The board is grateful to the majority of long-standing partners who supported its effort to negotiate an informal restructure of the group,” it said.

“The board wishes to reiterate its belief to those who supported the restructure, to Mosaic’s customers and, most importantly, to Mosaic’s dedicated team across Australia, that the business has a long-term future.”