Major Aussie fashion brand enters voluntary administration
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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.
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.
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.
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.
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