Mosaic Brands, a fashion retailer with over 2,700 employees in Australia, has entered into voluntary administration.
The company is behind some of the country’s most popular retailers, such as Noni B and Rivers.
On Monday, it appointed four administrators, including Kate Warwick, Vaughan Strawbridge, David McGrath, and Kathryn Evans.
Following a recent downsizing, the company said it would like to “capitalize and invest” in five of its core brands. It had previously closed around 200 stores.
In a statement, the company noted that it had been trying to restructure its operations, but the voluntary administration was the best option.
Despite the company’s financial troubles, it noted that it would continue to trade. It also said that it would focus on its restructuring efforts to improve its operations.
The shares of the company have dropped significantly over the past year.
In spite of the company’s recent financial troubles, CEO of Mosaic, Berchtold, was still positive about the company’s potential.
She noted that it had an opportunity to transform itself by developing a compelling market proposition for its customers.
The company noted that it would focus on its core brands to attract new customers and improve its operations.
As a receiver, KMPG will be responsible for overseeing the company’s trading operations.
David Hardy, a partner at KPMG, noted that the company’s operations would be managed to preserve its value while also serving its customers.
He said that the company’s suppliers would be supported during the course of the administration.
The Mosaic Brands group, which includes multiple fashion labels, is known for its products, which are loved by many Australians.