Mosaic Brands, the parent company of several well-known Australian fashion retailers, is shutting down its women’s clothing line, Katies, and closing numerous stores as part of a consolidation plan that will lead to hundreds of job losses.
The company announced on Tuesday that Katies will be discontinued, with all 80 of its stores set to close by mid-January. In addition, 80 more stores from its other brands — Millers, Rivers, and Noni B — will also shut down during the same period.
This move will result in the loss of around 480 jobs across the affected stores.
KPMG, the receivers managing the company’s affairs alongside administrators FTI Consulting, explained that the closures followed a review of the business. The review identified a number of “loss-making” stores that could no longer be sustained.
KPMG issued a statement thanking all employees, especially those whose roles are being eliminated, for their hard work and commitment during the receivership process.
Company Struggles and Administration
Mosaic Brands, which once operated around 700 stores across Australia, entered voluntary administration in October. The company, which owes creditors $249 million, had already announced the closure of five brands — Rockmans, Autograph, W.Lane, Crossroads, and BeMe — leading to the closure of 231 stores.
At the time, CEO Erica Berchtold explained that the company’s decision to “rationalise its brand portfolio” was aimed at simplifying operations and focusing on key growth brands: Millers, Noni B, Rivers, Katies, and its online marketplace.
Now, Katies will be shut down permanently, and Millers, Rivers, and Noni B will continue with a smaller number of locations across the country.
Ongoing Restructuring Efforts
KPMG assured that the decision to consolidate the stores was not made lightly. The company said that since its appointment, it has worked to stabilize operations, ensuring that the business continued trading while engaging with suppliers to ensure stock availability for key trading periods, including Black Friday and Christmas.
The closures will not affect the ongoing sale of Mosaic Brands Group. KPMG confirmed that non-binding offers were submitted in late November, and shortlisted parties are currently conducting due diligence. As negotiations continue, the deadline for binding offers has been extended to the end of December 2024.
Mosaic Brands’ efforts to restructure come as it faces a difficult period, aiming to streamline its operations and focus on its most successful brands.
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