Published October 28, 2024
The parent company of Australian clothing brands Rivers, Katy’s and Noni B has gone into voluntary administration. Australian fashion retailer Mosaic Brands goes bankrupt. Image Source: Mosaic Brands Key Takeaways Mosaic Brands has entered voluntary administration after attempts by the company to restructure its business failed. The company was working on a plan to save its business, including focusing on key growth brands and cutting costs. The company suspended trading in late August but had planned to resume trading on the ASX after restructuring. The business was placed into voluntary administration after some parties refused to support the proposed restructuring or negotiate commercial outcomes. few
3.6 cents. This was the price Mosaic Brands stock was trading at just before the company suspended trading at the end of August. This is a far cry from the company’s 2018 stock price of $3.50.
Currently, the company’s market capitalization is just $6.4 million
what we know
Mosaic Brands is informally seeking to restructure its business by rationalizing the group’s brand and store portfolio, focusing on key growth brands, cutting costs and improving its working capital position. Ta. This required consultation with suppliers, landlords and even the ACCC. As a result, the company announced in September that it was withdrawing from the Rockmans, Autograph, Crossroads, W. Lane, and Beamy brands and closing approximately 200 of its 700 stores nationwide.
However, a statement from the company to the ASX said a settlement with the ACCC could not be reached as “a small number of parties” refused to support the proposed restructuring or negotiate commercial outcomes. We have decided that the best way forward is to manage the situation voluntarily.
The company has appointed Vaughan Strawbridge, Kathryn Evans, Kate Warwick and David McGrath of FTI Consulting as administrators.
important quotes
“The Mosaic brand continues to be an exciting opportunity for our target customers and employees to reposition our business with a clearly defined market proposition that we are proud of.
“Our priority is to accelerate the rationalization plan we have developed to focus on core brands that deliver our existing services and attract new customers across Australia’s metropolitan areas and key regions.” – Erika Berchtold, CEO of Mosaic.
tangent
Retail bankruptcies have hit several business owners this year. Specifically, the famous Australian fashion brand Dion Lee, which went into voluntary administration in May of this year, and Booktopia, which went bankrupt in July.
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