The administrators have shut down 80 stores across the Millers, Rivers, Noni B brands, while shutting down the remaining 80 stores of the Katie's brand.
👉 Background: Mosaic Brands is the parent company of a bunch of retailers - mainly specialising in women’s budget clothing brands. At their peak, Mosaic Brands had 4,000 staff in 700 stores across Australia. But, when COVID hit, they got whacked with a $170 million loss and really haven’t been the same ever since.
👉 What happened: Back in October, Mosaic Brands fell into administration. Now, the administrators have shut down 80 stores across the Millers, Rivers, Noni B brands, while shutting down the remaining 80 stores of the Katie's brand.
👉 What else: This also means the loss of almost 500 jobs. This re-structuring of the business is all about getting Mosaic Brands back on its feet… then selling off the different parts to different buyers.
💡Administrators are the clean-up crew for struggling businesses. They come in to stabilise the current operations and protect whatever value is left… so ultimately they can sell it off and maximise returns for creditors and shareholders.
💡When Mosaic Brands went into administration, the administrator, KPMG, came in to assess its financial heath and then make tough decisions like shutting down poor-performing stores and brands, like Katies.
💡But just because a company goes into voluntary administration doesn’t mean it’s all over red rover. Virgin Australia went into voluntary administration in 2021 and was purchased by Bain Capital. Since then, it has gone from strength to strength and even returned to profitability in FY23 with more than $519 million in earnings.
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