An Australian style merchant with about 2,700 staff members throughout 700 shops has actually gone into volunteer management. Mosaic Brands lags prominent stores like Katies, Rivers, Millers and Noni B.
The ASX-listed merchant made the news on Monday, designating Vaughan Strawbridge, Kathryn Evans, Kate Warwick and David McGrath from FTI Consulting as managers. The team is currently looking for to “capitalise and invest” in 5 core brand names after a current scale down.
Mosaic shut around 200 shops when brand names like Crossroads, Rockmans, Autograph, W.Lane and BeMe were deserted last month
“Following recent attempts by the company to informally restructure its operations, the Board of Mosaic has determined that voluntary administration is now the most appropriate way to restructure the group,” the business claimed.
RELATED
“With the team remaining to trade, administration plans to proceed its brand name rationalisation and broader restructuring strategy and to concentrate on the trick Christmas and vacation trading duration.”
Shares in the company have plummeted in the past 12 months, tumbling from 10c to 3.6c to give the business a market capitalisation of just $6.4 million.
Mosaic CEO Erica Berchtold was confident the company could turn the business around.
“Mosaic Brands continues to be an exciting opportunity to reshape a business with a clearly defined market proposition for its target customers, and employees, that we can be proud of,” she said on Monday.
“Our priority is to accelerate the rationalisation plans we have in place to focus on the core brands to service current and attract new customers across metropolitan and importantly regional Australia.”
KMPG has been named as receivers to collaborate on a restructure and oversee trading operations.
“We will be seeking to stabilise the operations of Mosaic to preserve the underlying value of the business while endeavouring to serve its customers, with support from its employees and suppliers to minimise business interruption,” KPMG companion David Hardy claimed.
“The Mosaic Brands team has a profile of famous style tags whose clothes and items are much liked by generations of Australians.”
Get the most up to date Yahoo Finance information – follow us on Facebook, LinkedIn and Instagram.
