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Mosaic Brands
Mosaic Brands Limited is an Australian fashion retail company. It operates 715 stores across Australia under the brands Millers, Rockmans, Noni B, Rivers, Katies, Autograph, Crossroads, W. Lane and Beme.[1] The company's core market is women over the age of 50.[2] In 2024 it was placed into voluntary administration with administrators appointed from FTI Consulting and receivers and managers from KPMG[3] after not gaining approval on an emergency restructure. It announced it would wind down the Rockmans, Autograph, Crossroads, W.Lane and Beme brands, with receivers later winding down the Katies brand as part of extended store closures. HistoryMosaic Brands began as Noni B which was founded by Alan Kindl. Kindl had been a stockfeed chemist and was seeking a career change. When the opportunity came up in 1977, Kindl partnered with a friend to buy a women's fashion boutique in Belmont, New South Wales and another store nearby.[4] By 1989, there was 38 Noni B stores in New South Wales and Victoria. Kindl's friend wanted to leave the business so Kindl purchased his stake in the company for $1.2 million.[4] In 2000, Noni B listed on the Australian Securities Exchange.[5]  In 2003, Noni established Liz Jordan, a new brand aimed at younger, more upmarket customers.[5] Liz Jordan products were sold in dedicated stores and in many Noni B stores.[4] Although Noni B planned on moving upmarket with Liz Jordan, its products struggled to command higher prices because they were sold in Noni B stores.[6] In August 2006, Noni B launched a new concept called La Voca, aimed at a similar demographic to Liz Jordan but with greater separation from Noni B.[7] At the same time, the company closed its Liz Jordan stores, rebranding them as Noni B or La Voca stores. Liz Jordan products continued to be sold in Noni B stores.[6] In June 2008, Noni shut down the loss making La Voca venture. About half of the 19 La Voca stores were rebranded to Noni B stores.[8] In September 2014, private investment firm Alceon Group attempted a takeover of Noni B. The Kindl family sold their 42 per cent stake in Noni B to the firm.[9] However, Alceon was blocked from taking the company private when Gannet Capital acquired a 12 per cent stake in Noni B.[10][11] In November 2014, Scott Evans was appointed CEO of Noni B.[12] In December 2014, Noni B bought two brands—Queenspark and Events—for $675,000.[13] GrowthIn August 2016, the company purchased Pretty Girl Fashion Group from Consolidated Press Holdings for at least $75 million in cash and shares. Pretty Girl Fashion Group had around 370 stores under the brands Table Eight, Rockmans, BeMe, and W. Lane.[14] In July 2018, Noni B purchased five brands—Autograph, Crossroads, Katies, Millers and Rivers—from Specialty Fashion Group for $31 million.[15]  In November 2019, Noni B purchased a 50.1 per cent stake in New Zealand multi-channel retailer EziBuy from Alceon Group in a $1 peppercorn sale.[16] That month, Noni B Limited also changed its name to Mosaic Brands.[17] Decline and non-complianceThe onset of the COVID-19 pandemic in Australia led Mosaic to temporarily closed its 1379 stores and stand down 6800 staff in March 2020.[18] Between the start of the pandemic and September 2021, the company closed 288 stores.[19] The company announced a $32 million capital raise in September 2021 to help it stay afloat until pandemic restrictions eased.[20] In May 2021, the company was fined $630,000 by the Australian Competition and Consumer Commission (ACCC) for making false or misleading claims pertaining to hand sanitiser and face mask products.[21] The company was also fined $266,400 in September 2022 for false claims regarding two other products. Mosaic Brands said the two products were from "third-party sellers" and "neither product was ever purchased by a customer".[22] Mosaic purchased the remaining 49.9 per cent stake in EziBuy in October 2021 for $11 million.[23] In April 2023, Mosaic placed EziBuy into administration, with plans to restructure it.[24] With this the remaining stores were closed down and the retailer went online only.[25] The brand entered liquidation in July 2023 with creditors owed more than $100 million.[26][27] In May 2023, Mosaic was fined $29,000 after it pleaded guilty to 324 offences of underpaying long service to workers. The court found that while the underpayments were not deliberate, they occurred due to a lack of care and diligence.[1] Erica Berchtold was appointed CEO of Mosaic Brands in February 2024.[28] The following month, the ACCC brought proceedings against the company for allegedly making false or misleading representations to consumers about delivery timeframes and their rights regarding refunds for faulty products.[29] Rescue plan and receivershipIn September 2024, the company announced it would wind down its Rockmans, Autograph, Crossroads, W.Lane and Beme brands.[30] The company had previously also began closing or centralising stores mostly in rural areas. [31] In late October 2024, Mosaic Brands was placed into voluntary administration, [3] after failing to convince all stakeholders of the restructure, principally the senior lender, and citing reduced spending, structural complexity and massive debts to suppliers. The company appointed administrators from FTI Consulting, with KPMG appointed receivers and managers by the creditor. The company has started focusing on the timely holiday period and slashed prices while preparing for a creditors' meeting.[31] The creditors' meeting has revealed an estimate of $240 million in debt from a laundry list of creditors, but the true extent has not been disclosed and some debts overlap.[32] A sale process is underway, with a dozen interested parties and hints at breakups and resumed store closures, staving a complete receivership and shutdown. The receivership has also left Bangladeshi suppliers out of pocket and owing unpaid wages (but were crammed down in previous arrangements),[3] and brought shame on the industry from Oxfam and Bangladesh Garment Manufacturers and Exporters Association with accusations of exploitation and inadvertent free labour, and fears of seamstresses going hungry.[33][34] Administrators have tried to assure creditors that entitlements shall be paid in full, despite the receivership (which usually prioritises the appointee) and heavy debt. Administrators allege the company may have been under safe harbour as early as late 2022.[35] It was pressured to disclose that the company was under safe harbour in August 2024.[36]  On 10 December, receivers announced that the entire Katies brand and an additional combined 80 Millers, Rivers and Noni B stores would be closed down by mid-January 2025, affecting 480 employees.[37][38] It comes after receivers weeded out remaining underperforming stores and buyers saw the Katies brand as an 'uneconomical' blight that would 'present difficulties' for them.[39] Administrators have been meanwhile trying to sell the group, with the deadline extended from 13 December to the end of December 2024.[35][38] References
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