Parent Company of Millers, Noni B, and Rivers Enters Voluntary Administration

Mosaic Brands, a company that operates various popular Australian fashion chains, has entered voluntary administration.

The ASX-listed company, which has around 3,000 employees in 700 stores across Australia and New Zealand, made efforts to keep its Millers, Noni B, Rivers, and Katies chains running.

Simultaneously, it attempted to close down its Rockmans, Autograph, Crossroads, W.Lane, and BeMe brands.

“The group’s leadership received support from a significant majority of its commercial partners and believed that the restructure would benefit all stakeholders, leading to a more focused and financially robust retailer,” a statement mentioned.

However, on Oct. 28, the company announced that it was entering voluntary administration.

“Following recent efforts by the company to informally reorganize its operations… voluntary administration is now deemed the best way to restructure the group,” the company stated.

Reports suggest that a “small number of parties” disagreed with the restructure and that a mutually acceptable agreement could not be reached with the competition watchdog.

The company plans to operate during the busy Christmas shopping season and assures the public that there is hope for the future.

“The board wants to emphasize its confidence in the restructuring supporters, Mosaic’s customers, and especially Mosaic’s devoted team in Australia, assuring that the business has long-term prospects,” the statement reassured.

Mosaic faced challenges earlier this year as it transitioned to a new supply chain and distribution system with a new global partner, resulting in low stock levels for Mother’s Day.

The company’s shares have been halted from trading on the ASX since Sept. 2 due to the delayed submission of its 2023/24 financial report, originally due in August.

In February, Mosaic reported a net profit of $5.4 million, a 38 percent increase from the previous quarter.

However, by the end of the 2022/23 fiscal year, it had a net liability of $66 million (US$43.5 million), including $39 million in debt and $45 million in lease liabilities.

The annual report indicated that this financial situation “may raise doubts about the group’s ability to continue operations.”

Despite ongoing debt obligations, Mosaic’s board remained hopeful about meeting its financial commitments.”