The retail landscape in Australia has just suffered another major blow. Fashion brands Millers and Noni B, the last remaining retailers in the Mosaic Brands stable, are set to close hundreds of stores and cut over 900 jobs.
This devastating news comes just a week after it was announced that Australian clothing and footwear brand Rivers would also be wound up.
What Went Wrong?
Despite efforts to save the brands, receivers and managers of parent company Mosaic confirmed that they were unable to achieve a sale of any of the brands within the Mosaic portfolio.
“As a result, all stores in the Mosaic Brands Group will be wound down over the coming months. We expect all stores will be closed by mid-April,” said KPMG partner David Hardy.
The Numbers Don’t Lie
The decision will affect a total of 252 stores, including 11 in New Zealand, and will impact 933 workers.
The receivers have thanked the Mosaic management team, employees, customers, and suppliers for their support throughout the receivership process.
Industry Expert Weighs In
Dr Carol Tan, a fashion industries expert at RMIT, says the decision is not surprising given the financial struggles and the current retail environment.
“The rise of online shopping, changing consumer behaviours, and economic pressures have made it increasingly hard for traditional retailers to survive,” she said.
The Future of Retail
The closure of Millers and Noni B will join a long list of retailers that have struggled to stay afloat in recent months. Rockmans, Autograph, W.Lane, Crossroads, BeMe, Katies, and Rivers have all been dismantled or announced to be on the scrapheap since September.
The situation “reflects the ongoing difficulties for brick and mortar stores” and may prompt other retailers to rethink their strategies and adapt to the evolving market landscape.
What’s Next?
The timing of individual Millers and Noni B store closures will differ, and sales events will be run while stocks last.
The voluntary administrators’ focus is now on finalising their investigations and report to creditors, with a second meeting of creditors likely to be called and held in May.
As for Mosaic’s future, options appear to be dwindling by the week, leaving many to wonder what’s next for the struggling brand.