Growth
In August 2016, the company purchased Pretty Girl Fashion Group from Consolidated Press Holdings for at least $75 million in cash and shares. Pretty Girl Fashion Group had around 370 stores under the brands Table Eight, Rockmans, BeMe, and W. Lane.[13] In July 2018, Noni B purchased five brands—Autograph, Crossroads, Katies, Millers and Rivers—from Specialty Fashion Group for $31 million.[14] In November 2019, Noni B purchased a 50.1 per cent stake in New Zealand multi-channel retailer EziBuy from Alceon Group in a $1 peppercorn sale.[15] That month, Noni B Limited also changed its name to Mosaic Brands.[16]
Decline and non-compliance
The onset of the COVID-19 pandemic in Australia led Mosaic to temporarily close its 1379 stores and stand down 6800 staff in March 2020.[17] Between the start of the pandemic and September 2021, the company closed 288 stores.[18] The company announced a $32 million capital raise in September 2021 to help it stay afloat until pandemic restrictions eased.[19]
In May 2021, the company was fined $630,000 by the Australian Competition and Consumer Commission (ACCC) for making false or misleading claims pertaining to hand sanitiser and face mask products.[20] The company was also fined $266,400 in September 2022 for false claims regarding two other products. Mosaic Brands said the two products were from "third-party sellers" and "neither product was ever purchased by a customer".[21]
Mosaic purchased the remaining 49.9 per cent stake in EziBuy in October 2021 for $11 million.[22] In April 2023, Mosaic placed EziBuy into administration, with plans to restructure it.[23] With this the remaining stores were closed down and the retailer went online only.[24] The brand entered liquidation in July 2023 with creditors owed more than $100 million.[25][26]
In May 2023, Mosaic was fined $29,000 after it pleaded guilty to 324 offences of underpaying long service to workers. The court found that while the underpayments were not deliberate, they occurred due to a lack of care and diligence.[27]
Erica Berchtold was appointed CEO of Mosaic Brands in February 2024.[28] The following month, the ACCC brought proceedings against the company for allegedly making false or misleading representations to consumers about delivery timeframes and their rights regarding refunds for faulty products.[29]
Rescue plan and receivership
In September 2024, the company announced it would wind down its Rockmans, Autograph, Crossroads, W.Lane and Beme brands.[30] The company had previously also began closing or centralising stores mostly in rural areas.[31] In late October 2024, Mosaic Brands was placed into voluntary administration,[32] after failing to convince all stakeholders of the restructure, principally the senior lender, and citing reduced spending, structural complexity and massive debts to suppliers. The company appointed administrators from FTI Consulting, with KPMG appointed receivers and managers by the creditor. The company has started focusing on the timely holiday period and slashed prices while preparing for a creditors' meeting.[31]
The creditors' meeting has revealed an estimate of $240 million in debt from a laundry list of creditors, but the true extent has not been disclosed and some debts overlap.
Liquidation
On 29 January, receivers announced that remaining Mosaic Brands retailers Millers and Noni B would cease operations, effectively placing Mosaic Brands into total liquidation. All remaining 252 stores across both brands will also permanently close by mid-April alongside Rivers, and will result in the loss of another 933 employees, after the search for a buyer failed.[42][43][44]
Administrators weren't drawn on how what ended up being a 'complete' receivership will affect the payment of creditors, particularly the unpaid factory workers, saying they will do some final investigations and hold a creditors meeting in May 2025.[45] On 28 February, the federal government announced they will fast track workers entitlements owed by the company.[46] The company was later also referred to the Australian Securities and Investment Commission by out of pocket suppliers for alleged misconduct. ASIC says they may pursue legal action but there is no evidence to suggest any wrongdoing at the moment.
