Mosaic Brands’ collapse totals $318m, staff owed | Australian Markets

Piles of debt and no future certainty have been the deadly blows for a secure of well-known Australian clothes manufacturers because the mother or father company formally goes bust.

Retail giant Mosaic Manufacturers – proprietor of Millers, Rivers, Crossroads, Katies, Noni B and Autograph – collapsed into voluntary administration in October 2024.

In a discover to collectors delivered final week, Mosaic’s whole debt appears to have been lastly tallied at more than $318m.

Extra than 2800 employees who labored throughout Mosaic’s Australian and New Zealand shops are owed $22m and receivers and managers KPMG say it will possible be paid in full.

Secured collectors are more likely to see the $54m they’re owed. However the collapse has left a $242m gap for 613 unsecured collectors, and no matter is left over will likely be divided amongst them.

This listing of business owed money consists of more than 100 entities in Bangladesh, India and China.

The February 17 discover additionally confirms the ultimate two Mosaic manufacturers, Millers and Noni B, will likely be compelled to close after no consumers had been prepared to buy the belongings.

“Following the sale process, and despite a number of expressions of interest being received, the businesses operated by the Mosaic Group were unable to be sold. Given this, the receivers and managers have advised all stores will likely close by mid-April 2025 and the business will cease to operate,” the discover mentioned.

Unsure futures for the manufacturers, the “historical indebtedness” and a lack of future stock orders had been key issues for potential consumers.

“The receivers are cautiously optimistic amounts owed to employees of the Mosaic Group will be paid in full, however the timing of the payment to employees is currently unknown.”

Inventory within the remaining shops is being run down and offered off, after which the retailers will close.