The Australian retail landscape is about to take a significant hit. Katies, a beloved fashion brand, will be shutting down all of its stores nationwide next month, along with 80 other stores owned by Mosaic Brands.
This means that approximately 480 people will be losing their jobs in the New Year.
The Crisis Deepens: Mosaic Brands Enters Voluntary Administration
The troubles for Mosaic Brands began in October when the company entered voluntary administration. Just a month prior, the company had already shut down several of its other brands, including Rockmans, Crossroads, W Lane, BeMe, and Autograph.
Which Stores Are Closing?
So, what does this mean for Mosaic Brands’ portfolio? In addition to all Katies stores, 80 other stores across Millers, Rivers, and Noni B will also be closing their doors. The receivers and managers at KPMG have identified the stores that will be closed as those that have been making a loss.
The Human Cost: 480 Jobs Lost
The decision to close these stores will have a devastating impact on the employees who will be losing their jobs. About 480 people will be out of work in January, a worrying prospect as the New Year begins.
A Difficult Decision
A spokesman for the receivers and managers of Mosaic Brands stated that the decision to close the stores was not taken lightly. “The receivers and managers would like to thank all employees, particularly those whose tenure is coming to an end, for their commitment and support through the receivership process.”
Mosaic Brands’ Debt Crisis
This is not the first time Mosaic Brands has made headlines for its financial struggles. In November, it was revealed that the company owed a staggering $249 million to 171 creditors, as well as an undisclosed amount to 300 employees. What’s more, Mosaic owes 23 Bangladeshi garment factories more than $30 million, leaving workers who earn just a few hundred dollars a month worried about how they will feed their families.
The closure of Katies and these other stores is a stark reminder of the challenges facing the Australian retail industry. As the sector continues to evolve, it’s clear that some brands will struggle to stay afloat.