In an attempt to turn its financial fortunes around, Australian fashion company Mosaic Brands will close its doors on several prominent retail brands.
Some of these include Rockmans, BeMe, W.Lane, and Autograph. In a statement, CEO Erica Berchtold noted that the company would focus its efforts on five of its core growth brands.
According to Ms Berchtold, the company’s new strategy will focus on simplifying its operations and resources.
Following the company’s exit from several prominent brands, she noted that the company would now focus on its remaining five core growth brands.
These include Noni B, Millers, Katies, Rivers, and Mosaic’s online marketplace.
The company’s new strategy will focus on its remaining five core growth brands, which will have a distinct market proposition and a product range that caters to different target groups.
Ms Berchtold noted that the company would continue to focus on regional Australia.
Mosaic Brands is currently facing a court action brought by the ACCC for allegedly failing to deliver orders within the advertised time frames.
The company, which is known for its large number of stores, employs over 4,000 staff members in Australia.
The planned closures will reduce the number of its stores to less than 500.
The company’s various brands, such as W.Lane, Rockmans, and Autograph, were retailed in 220 group stores. The closures are expected to affect around 200 employees.
As part of its restructuring plan, Mosaic Brands is trying to minimize the impact of the layoffs by transferring affected crew members to other parts of the company.
The closures come on the heels of Mosaic Brands’ repeated losses, which it previously estimated at $170.5 million following the pandemic. It then recorded a loss of $11.5 million in 2022.
With the company’s annual results still to be released, it is expected that its losses for the financial year 2024 will be even larger.