Mosaic Manufacturers, the mother or father firm behind Australian clothes manufacturers Rivers, Millers and Katies, has entered voluntary administration.
The ASX-listed firm which operates greater than 700 shops and employs about 3,000 workers launched an announcement on Monday confirming its board’s determination.
“Following recent attempts by the company to informally restructure its operations … voluntary administration is now the most appropriate way to restructure the group,” the assertion mentioned.
The corporate discontinued 5 of its signature manufacturers in September and closed shops because it tried to place its funds on a sound footing.
Mosaic mentioned the closure of the Rockmans, Autograph, Crossroads, W.Lane and BeMe manufacturers would permit it to deal with Millers, Noni B, Rivers and Katies, and a standalone on-line market.
“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,” the assertion learn.
However on Monday the board mentioned a “small number of parties” had not agreed with the restructure and a “commercially acceptable” consequence couldn’t be reached with the competitors watchdog.
The corporate mentioned it will proceed to commerce and would deal with “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,” it mentioned.
The group has about 763 shops throughout Australia and New Zealand however has been attempting to focus extra on big-box Rivers megastores in regional Australia as a part of its “BIG strategy”.
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Mosaic confronted issues earlier this yr because it migrated to a brand new absolutely built-in provide chain and distribution system with a brand new international accomplice, and had little stock available for the important thing Mom’s Day buying and selling interval.
The corporate’s shares have been suspended from the ASX since 2 September due to a delay in submitting its 2023/24 monetary report, which was due in August.
In February, Mosaic mentioned it made a $5.4m internet revenue, up 38% from the earlier quarter.
But it surely additionally ended 2022/23 with a internet legal responsibility place of $66m, together with $39m in debt and $45m in lease liabilities, which its annual report famous “may cast significant doubt on the group’s ability to continue as a going concern”.
On the time, Mosaic’s board of administrators expressed optimism the corporate would be capable to pay its money owed as and once they fell due.
