In another shocking blow to the Australian fashion industry, yet another major retailer has announced it is entering administration. Aussie company Mosaic Brands will be restructuring its operations, putting thousands of jobs on the line.
It seems like only recently the collapse into liquidation of designer label Dion Lee was announced. And now, months later it appears as though the fashion industry is continuing to struggle in Australia as another company announces its voluntary administration.
Mosaic Brands — the overseeing company for such fashion labels as Rivers, Katies, Millers, and Noni B — made the startling announcement on Monday afternoon in a statement to the Australian Securities Exchange (ASX).
The announcement of the “necessary process to reset” will impact almost 3,000 workers across the country, which operates more than 700 stores nationwide.
The decision to enter voluntary administration comes after Mosaic Brands shut down five of its labels in September, which saw the end of Rockmans, Autograph, Crossroads, W.Lane, and BeMe.
In the statement released today, Mosaic Brands wrote that it had been forced to make the difficult choice after a “small number” of its financial supporters pulled out.
“The group’s leadership received the support of a significant majority of its commercial partners and was confident that the restructure would be in the best interests of all stakeholders, resulting in a more focused and financially stronger retailer, with the expectation that its securities would resume trading on the ASX,” read the statement.
“However, a small number of parties declined to support the restructuring proposal or negotiate a commercial outcome, and a commercially acceptable resolution could not be reached with the ACCC.
“Accordingly, Mosaic’s Board made the difficult decision today to appoint administrators.”
Thankfully for the current employees, it announced it would continue to operate and trade with its remaining brands over “the key Christmas and holiday trading period”.
“The Board wishes to reiterate its belief to those who supported the restructure, to Mosaic’s customers and, most importantly, to Mosaic’s dedicated team across Australia, that the business has a long-term future,” said the statement.
As well as the aforementioned Dion Lee, other Aussie fashion labels to face financial trouble over the last few years include Harlow, Aensdorf, Nique, Mara Hoffman, and The Vampire’s Wife.
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