The retail industry has seen many brands enter administration or close shop.

This reflected the vulnerable state of the industry post-pandemic.

In a recent development, the parent company of homegrown clothing brands joined one of the many companies with an uncertain future.

Mosaic Brands—a fashion retailer behind brands like Millers, Rivers, and Katies—has entered voluntary administration.

The announcement affected nearly 3,000 jobs and more than 700 retail stores nationwide.

The Australian Securities Exchange (ASX) announced the brand's decision.

Mosaic Brands previously housed nine brands under their name. Image Credit: Mosaic Brands

The administration came after a previous announcement last month that Mosaic would shut down five of its brands—Rockmans, Autograph, Crossroads, W.Lane and BeMe.

Closing down these brands was initially a move to focus on its remaining core brands.

However, despite restructuring efforts, the company did not get the necessary support from a few key stakeholders and has faced challenges with a major government commission.

Despite entering administration, Mosaic Brands assured customers that it would continue to trade throughout Christmas and the holiday period.

Shoppers may still shop at any Mosaic Brands stores.

However, the long-term future of these brands remains uncertain.

FTI Consulting stepped in as the administrator, and KPMG will be handling the retailer's operations.

Both teams should stabilise the company and preserve the value of its brands, famous among Australians in regional areas where options may be limited.

Earlier this year, the brand faced allegations from the Australian Consumer and Competition Commission (ACCC) for breaching the Australian Consumer Law.

The brand has allegedly misled consumers about delivery times and consumer guarantee rights.

Mosaic Brands' share price also plummeted from $2.30 in January 2020 to 3.6 cents before trading was suspended in August.

This dramatic drop reflected the broader challenges the brand has been facing, including changing consumer habits, the rise of online shopping, and the economic impacts of the COVID-19 pandemic.

Mosaic Brands may close a few stores, reducing local shopping options and jobs in respective communities.

It could also result in clearance sales, offering an opportunity for bargain hunters.

Overall, Mosaic Brands' situation is a reminder about supporting local brands and stores.

The retail landscape is ever-changing, and with it, shopping habits also adapt.

Key Takeaways

• Mosaic Brands, the company behind Australia's popular fashion brands, has entered voluntary administration.
• The company will undergo restructuring, with FTI Consulting and KPMG overseeing the process.
• The decision for voluntary administration came after failure to secure support from several parties and recent allegations from the ACCC.
• Despite administration, Mosaic Brands will continue to trade throughout the Christmas season.

Have you shopped at Millers, Rivers, Katies, or any Mosaic Brands stores recently? What does this mean for your shopping habits? Share your thoughts with us in the comments below.

 

[Penny4]

Unfortunately all these supposed thousands of people no longer shop at these stores, otherwise they would not be going into administration.
The reason businesses go bust is lack of customers.
To start there are miles too many of these stores, all selling very much the same products.
I used to shop at Rockmans but over the last few years I haven't.
I don't know if they hired a new buyer, but the quality and style went right down the gurgler IMO.
When you go to places like the Mandurah Forum,.where there are way too many clothing stores,.just about all of them are empty.
I have a friend who works at Portman's who told me she works many shifts where she is lucky if she makes a sale.

Don't know if they hired a new buyer, but I do know they shifted to Noni B which is Mosaic to run the business. Also, they are a public company, so it's all about the CEO bonus profits for the share holders. They don't care if they close down because they have received their $$ imo. I will continue to say it's such a shame for customers around Australia.

 

[mylittletibbies]

Don't know if they hired a new buyer, but I do know they shifted to Noni B which is Mosaic to run the business. Also, they are a public company, so it's all about the CEO bonus profits for the share holders. They don't care if they close down because they have received their $$ imo. I will continue to say it's such a shame for customers around Australia.

How do you figure that, shareholders receive their returns based on the profits made by the company. No profits, no returns
Company goes bust your shares are useless.

 

[Penny4]

How do you figure that, shareholders receive their returns based on the profits made by the company. No profits, no returns
Company goes bust your shares are useless.

Yes, that too. There was a new Rivers store that opened last year in my local shopping centre. Hardly anyone shopped there.

 

[Giannidifirenze]

Millers is the only ladies clothing store in my town that everyday people can afford!
NO Kmart, NO Big W, NO Target, NO Best & Less,
We have a Locally own business, But who can afford $99 for a T-shirt?
Looks like travelling 100km to buy clothes!

Online shopping is a major growth area of large retailers. I know that I fit neatly into an L in Levi’s tee shirts and size 6 (36) in TH Brooklyn shorts. Wait for sale and buy $44 & $105 at Myer free delivery over $100. Clothes are long wearing (5 years).

 

[Phyll]

Millers used to be my go to store until the quality of merchandise drastically dropped . Not only the quality of fabrics but the workmanship . I was always finding puckered or splits in the seams, ,buttons missing or hanging by a thread & not true to size garments . Out of interest am I the only one who doesn’t like creased up messy linen clothes ?

 

[mylittletibbies]

Millers used to be my go to store until the quality of merchandise drastically dropped . Not only the quality of fabrics but the workmanship . I was always finding puckered or splits in the seams, ,buttons missing or hanging by a thread & not true to size garments . Out of interest am I the only one who doesn’t like creased up messy linen clothes ?

I hate linen, it always looks like you slept in it.

 

[Kaylee]

I used to buy heaps from Millers but when Mosiac bought them out, their quality went down & prices went sky high. It doesn't help when their stores are open on restricted hours, open late, close early, & when you do go in there the store looks like a tip. Racks to tight to get around or shop, boxes everywhere on the floor. Certainly an accident waiting to happen.

 

[Jest]

everything they sell is made from china so i go direct to buy clothes and if you want cheap go to temu.

 

[BruceC]

Myer is NOT buying any Mosaic Brands. Solomon Lew is taking his brands (Dottis, Just Jeans Jacquie E, Portmanz etc into Myers.

Nothing to do with Mosaic Brands. So ni doubt, that'll be around 1400 stores that will disappear from shopping centres and around 7000 employees who lose their jobs. Unless, of course, buyers can be found fir any if the Mosaic brands. Only time will tell.

Myer is NOT buying any Mosaic Brands. Solomon Lew is taking his brands (Dottis, Just Jeans Jacquie E, Portmanz etc into Myers.

Nothing to do with Mosaic Brands. So ni doubt, that'll be around 1400 stores that will disappear from shopping centres and around 7000 employees who lose their jobs. Unless, of course, buyers can be found fir any if the Mosaic brands. Only time will tell.

Thank you for the correction.
It was reported on 7 news last night that Myer was buying Mosiac Brands..
That was obviously incorrect!

 

[Bill MacL]

It's the rent and labour that makes it impossible to sell at cheap prices.... unless you buy Chinese where the labour is as cheap as chips.

And the quality is pissweak.

 

[Macarj]

Yes I’ve shopped with them, but stopped a year or more ago, when the quality dropped big time !

I used to shop at Rivers but not for 10years because their quality dropped

 

[mylittletibbies]

And the quality is pissweak.

I buy most of my clothes from Temu (Chinese) and I've had no problem with the quality.
200% better than the rubbish they sell in Rivers.
Most clothes these days are made in China, Vietnam India, Bangladesh, etc, no matter where you buy them.
If you want things made in Australia or Europe then you have to be prepared to pay a premium for them.
Our wages are just so astronomically higher than these countries we can't possibly compete. We can't have it both ways.
Internet shopping has taken over and no wonder.
I recently bought a barn door, along with all the fittings, from Temu. Delivered to my door for $375, freight free.
Similar door from Bunnings was over $1000.00 and as I live in the country they wanted an additional $300 for delivery.
Anything I want these days I buy from Temu.

 

[Apollo]

These brands have fallen into the trap of lowering operating costs by outsourcing to the cheapest manufacturers and using cheap fabrics. Short term gain for long term failure.

 

[Zorro56]

My wife worked for both Katies and Millers for a total of almost 30 years. This was prior to Mosaic Brands purchasing Katies and Millers. I myself was a regular customer at Rivers. So pre Mosaic Brands ownership, these stores offered value for money clothing of reasonable quality. You got "Bang for Buck", and you had staff who knew their products and gave the customer "''SERVICE". Remember service??? Ah, they were the days! However, the main reason these businesses are no longer supported are basically as I have outlined above. No service, products that are faulty when purchase or start to fall apart after a couple of washes. Basically, they now sell "Cheap and Nasty" with staff levels cut to the bone. What staff they do have are clueless in relation to the products they sell or the basic ability to know what their customers will look and feel, good in or even the correct sizing. This is what happens when one large company dominates a market and takes their customers for granted. Sad for the employees, because from firsthand experience through my wife, shop assistants work very hard for crap pay. I guess only time will tell as to how this all plays out.

 

[Zorro56]

Did you conveniently leave out the fact that Myer will be buying many of the brands?

Myer buys more than 700 fashion stores, including Just Jeans, Portmans and Jay Jays

Department store giant Myer will purchase a slew of fashion chains, giving it ownership of nearly 800 retail stores across Australia and New Zealand.

www.abc.net.au

Sorry Bruce, but I think you will find that none of the Mosaic brands are being bought by Myer. The brands that Myer are purchasing are not owned by Mosaic.

 

[IAN3005]

And the quality is pissweak.

Yes

 

[Jabba]

The problem is that when these stores were sold years ago, the quality, the styles and the overall range of their clothing, including colours and designs, became nasty and cheap from Asian countries.
That's why they have gone into receivership.
I have not shopped at these stores for years!
Also when I shop for clothing elsewhere I wait until they are on sale, I never pay full price for anything. All manner of retail stores are on sale most of the time.
So we will see what new cheap stores will replace them!

 

[IAN3005]

The problem is that when these stores were sold years ago, the quality, the styles and the overall range of their clothing, including colours and designs, became nasty and cheap from Asian countries.
That's why they have gone into receivership.
I have not shopped at these stores for years!
Also when I shop for clothing elsewhere I wait until they are on sale, I never pay full price for anything. All manner of retail stores are on sale most of the time.
So we will see what new cheap stores will replace them!

Anyone who goes into business nowadays is stark raving mad.
Two shops in the small shopping centre have been vacant for over 2.5 years, right next to Coles, I might add.

 

[cblayney]

Did you conveniently leave out the fact that Myer will be buying many of the brands?

Myer buys more than 700 fashion stores, including Just Jeans, Portmans and Jay Jays

Department store giant Myer will purchase a slew of fashion chains, giving it ownership of nearly 800 retail stores across Australia and New Zealand.

www.abc.net.au

Not these stores.

 

[jay2]

People are buying more and more online especially from temu, others are are turning to op shops, times are very bad for many people , cloths are the last things they can afford. jay2