Major Australian fashion retailer collapses into voluntary administration

Mosaic Brands operates 700 stores with about 3,000 staff around Australia.

It comes after Mosaic on October 1 announced it would close five brands to "re-align and simplify" its operations. Those brands were Rockmans, Autograph, Crossroads, W.Lane and BeMe stores and their websites.

At the time CEO Erica Berchtold said the five brands "have become marginal and non-core" and their closure allows the company to focus on "five core growth brands"

On October 28, Mosaic's board told the ASX that following "informal attempts to restructure the brand" it had determined voluntary administration was the most "appropriate" path forward.

The company has appointed Vaughan Strawbridge, Kathryn Evans, Kate Warwick and David McGrath from FTI Consulting as administrators.

The board said a "significant majority" of commercial partners supported the informal restructure. However, a "small number" declined to support a "restructuring proposal or negotiate a commercial outcome".

"Accordingly, the Mosaic board made the difficult decision today to appoint administrators," the Board said.

"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."

The retailer will continue to trade with a focus on the Christmas and holiday trading period.

It's been a tumultuous time for Mosaic.

It was placed in a compulsory trading suspension on September 2 after failing to lodge its annual financial report.

The ACCC launched Federal Court action against the company in March 2024 after receiving hundreds of complaints about advertised delivery times.

In May 2023, Mosaic was fined $29,000 for underpaying workers' long service leave entitlements.