After falling into voluntary administration, Australian fashion group Mosaic Brands is facing debts totaling approximately $249 million across 171 creditors, as revealed in documents submitted to ASIC and obtained by Ragtrader. The brand’s appointed voluntary administrators from FTI Consulting and receivers from KPMG are currently overseeing the situation.
The creditors’ meeting highlighted that the debts are spread across Mosaic Brands Limited and its 12 subsidiaries, with some creditors claiming the same amount owed across all entities. Notably, over 300 employees are also owed amounts undisclosed, primarily under Noni B Holdings Pty Ltd, which holds a significant debt value attributed to key creditors.
Among the creditors, the top two claimants are reportedly owed $36.5 million and $22.2 million respectively, with similar amounts listed across the brand and its subsidiaries. Additional entities under Mosaic Brands, including Noni B, Millers, Rivers, Autograph, Crossroads, Katies, W. Lane, EziBuy, and Pretty Girl Fashion Group businesses, all face debts of around $60 million each.
The administrators are actively seeking potential buyers for Mosaic Brands, with over a dozen interested parties currently in the mix. Final bids are anticipated to be presented in early December, aiming to maintain competitive tension to secure the best outcome for employees and creditors.
While the administrators are exploring a potential store closure program, efforts are being made to facilitate re-deployment opportunities for affected staff to ensure continuity of employment. KPMG is committed to satisfying employee entitlements in full, emphasizing the importance of a successful sales process over liquidation or shutdown.
Before entering administration, Mosaic Brands operated around 700 stores and 10 online platforms. The recent development has also had repercussions in Bangladesh’s garment sector, impacting thousands of workers in 23 factories owed over $30 million, as reported by the ABC.
Ragtrader has been a longstanding source of news, analysis, and opinion on the Australian fashion industry, delivering insights since 1972. The evolving situation with Mosaic Brands underscores the challenges faced by retailers in the current economic climate, with implications reaching beyond national borders.
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