Mosaic Brands enters voluntary administration
Make us a preferred source
Make us a preferred source on Google
The news: Fashion retailer Mosaic Brands has appointed FTI Consulting as voluntary administrators after failing to informally restructure its operations.
The context: The company’s senior secured lender has appointed KPMG as receivers and managers to work alongside FTI through the restructure process.
The group said that a “small number of parties” declined to support its informal restructure proposal and a commercially acceptable solution could not be reached with the competition regulator.
In March, the competition regulator commenced proceedings in the Federal Court alleging that Mosaic breached consumer law by failing to deliver products to customers within the delivery timeframes advertised.
The group owns brands such as Millers, Rockmans Noni B, Katies, Autograph, W Lane, Crossroads and Beme.
What they said: “With the group continuing to trade, management intends to progress its brand rationalisation and wider restructuring plans, and to focus on the key Christmas and holiday trading period,” Mosaic said in a statement.
“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 source: ASX announcement
