The retail landscape in Australia is facing a significant shift as we enter the New Year, with the announcement that Mosaic Brands will be closing 160 stores nationwide. This move will unfortunately result in approximately 500 employees starting the year with uncertainty as they face job losses.
Mosaic Brands, a prominent Australian retailer known for its ownership of familiar brands such as Katies, Millers, Rivers, and Noni B, entered voluntary administration in October. This was a telling sign of the struggles the company was facing in the competitive retail market. Prior to this, the company had already begun downsizing its operations by shutting down other brands including Rockmans, Crossroads, W Lane, BeMe, and Autograph.
The decision to close these stores was not made hastily. Receivers and managers at KPMG conducted a thorough performance review of the Katies brand and the wider store network. They identified that the stores slated for closure were operating at a loss, which led to the decision to shut them down in January.
A spokesman for the receivers and managers stated, ‘The receivers and managers of the Mosaic Brands Group have made the difficult decision to commence a store consolidation program which will impact approximately 160 stores across the group’s portfolio.’ They also emphasised that the decision was a heavy one and that all affected employees and landlords will be notified as soon as possible.
The closure of these stores is not just a domestic issue. Mosaic Brands owes a significant debt to 23 Bangladeshi garment factories, totaling more than $30 million. The workers in these factories have expressed concerns about their ability to feed their families in light of the company’s financial troubles.
For the Australian employees facing job losses, the situation is grim. In November, it was revealed that the company owed about $249 million to 171 creditors and an undisclosed amount to 300 employees.
The receivers and managers have expressed gratitude to all employees for their dedication and support throughout the receivership process, especially to those whose employment is coming to an end.
We invite our readers to share their thoughts regarding the store closures. Has someone you know been affected? Tell us in the comments below.
Also read: Shoppers don’t trust retailers with their data, survey finds.
I feel sad that so many of these very affordable stores which have worked hard to update fashion trends are just being wiped off the map. They do cater to older folk but still remain modern and they also attract a younger clientèle. I think a possible draw card is the fact that they do bigger sizes, catering for the current increasing trend of expanding waistlines.
Where to now for older women who don’t want to dress in ripped jeans, skirts barely there, oversized knitwear or Charlie Chaplin style wide pants? Many stores don’t sell clothes in sizes above 14 and overall are much less affordable.
Shame on you Mosaic for losing so many stores and letting down your customers!
Ridiculous comment; do you think they want to lose their business?
Shame is on you for putting someone down in their misery
Another victim of the increased cost of living and the associated reduction in discretionary spending.
I feel very sad to see these stores go, I have bought garments from many of them. I do feel though that they should have stuck to womenswear, their mainstay that they did so well in for many years, and not diversified into so many other fields that plenty of other stores supply – such as sheets, towels, furniture, outdoor furniture, etc.