October 28th 2024.
Mosaic Brands Limited, a company that owns five popular Australian clothing retailers such as Millers, Katies, and Rivers, is facing a major crisis. Today, it made the difficult decision to enter voluntary administration, less than a month after closing down five of its brands. The company had been trying to restructure and improve its financial situation, but unfortunately, this effort fell through due to a small number of stakeholders refusing to support it.
In a statement released to the ASX this afternoon, Mosaic Brands explained that they had received the backing of a majority of their commercial partners and were confident that the restructure would benefit all stakeholders. They had even hoped that their securities would resume trading on the ASX. However, their plans were derailed when some parties chose not to support the proposal or negotiate a mutually beneficial resolution with the ACCC. As a result, the board had no choice but to appoint administrators.
The administrators chosen were Vaughan Strawbridge, Kathryn Evans, Kate Warwick, and David McGrath from FTI Consulting. This news comes just weeks after Mosaic announced its decision to wind down its Rockmans, Autograph, Crossroads, W Lane, and BeMe brands in order to focus on its other five retailers: Katies, Millers, Noni B, Rivers, and the Mosaic marketplace. This move resulted in the closure of more than 200 stores.
Despite entering administration, Mosaic Brands has assured its customers and stakeholders that its stores will remain open during the lead-up to Christmas. The company also stated that it plans to continue its brand rationalisation and wider restructuring efforts, while also focusing on the important Christmas and holiday trading period. The board wanted to reiterate its belief in the company's long-term future and extend their gratitude to those who supported the restructure, their loyal customers, and their dedicated team across Australia.
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