Parent company of popular Australian and New Zealand retail brands like Millers, Rivers, Katies, Noni B, and Autograph, Mosaic Brands has filed for bankruptcy. With around 763 stores and thousands of employees across both countries, the companyhas shifted its focus to expanding big-box Rivers megastores in regional areas of Australia.
A month prior to this announcement, Mosaic had opted to close its Rockmans, Autograph, Crossroads, W Lane, and BeMe brands, to concentrate more on its Millers, Noni B, Rivers, and Katies brands as well as a dedicated online marketplace. This strategic decision is expected to result in the numerous store closures and the loss of hundreds of jobs. As of Aug 2023, Mosaic operated 150 Rockmans stores, 49 Autograph stores, and 32 W.Lane stores, with BeMe and Crossroads exclusively online.
Mosaic has appointed Vaughan Strawbridge, Kathryn Evans, Kate Warwick, and David McGrath from FTI Consulting as administrators to oversee the insolvency process. Additionally, Mosaic’s senior secured lender has enlisted KPMG as receivers and managers to collaborate with FTI. The control of Mosaic will now transfer to FTI Consulting, which will evaluate the company's finances and determine whether restructuring is feasible to allow continued operations or if liquidation is necessary.
In Feb’04, Mosaic’s net profit rose by 38 per cent Q-o-Q rise to $5.4 million. However, the company registered a $66 million loss in FY22-23. This included $39 million in debt and $45 million in lease obligations. Mosaic’s annual report had cautioned that these financial burdens may cast significant doubt on the group’s ability to continue as a going concern. Nonetheless, the board of directors had previously expressed confidence in Mosaic’s ability to meet its financial obligations.
