Major retail group Mosaic plans to close all its remaining stores under the Millers and Noni B brands in Australia resulting in the loss of 933 jobs. This follows earlier closures of other Mosaic-owned chains, Katies and Rivers, bringing the total job losses to over 1,500.
KPMG, the receivers for Mosaic, confirmed the unsuccessful search for a buyer for the remaining brands. Filing for bankruptcy in October with $249 million in debt, the group employed over 2,500 workers across 651 stores in Australia and New Zealand. The fallout extends beyond Australia's borders. Garment factories in Bangladesh, reportedly owed $30 million by Mosaic, now face potential default, jeopardizing thousands of jobs.
Overseeing the administration process, FTI Consulting has not commented on whether creditors, including employees owed wages and entitlements, will receive compensation. An official statement from FTI noted they're focused on investigations and reporting to creditors, with a second creditors' meeting scheduled for May.
Mosaic's collapse reflects a broader trend of Australian businesses struggling with rising costs. Creditor Watch reports a 40 per cent increase in insolvencies compared to pre-pandemic levels, with business failures at their highest rate since October 2020. Along with food and beverage and administrative services, the retail sector has been particularly affected. Cautious consumer spending, rising interest rates, and economic strains are putting immense pressure on retail businesses.
Experts suggest that increased voluntary busitess closures may foreshadow further layoffs across Australia. Indeed data from November 2024 indicates that approximately 1.4 per cent of the Australian labor force has been laid off or made redundant. The Mosaic collapse serves as a stark example of the challenges facing the retail industry and the potential for widespread job losses.
