Embattled fashion retailer Mosaic to axe five brands, including Rockmans, in rescue plan
Embattled fashion retailer Mosaic Brands will axe five of its brands, including Rockmans and Autograph, as it struggles to keep afloat amid financial difficulties.
As well as those two brands, Mosaic revealed it would exit the Crossroads, W Lane and BeMe brands, including all stores and websites.
Mosaic chief executive Erica Berchtold said these five brands have become “marginal and non-core”.
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By continuing you agree to our Terms and Privacy Policy.Rockmans, Autograph and W Lane have a combined total of just over 230 stores across Australia, according to Mosaic’s 2023 annual report. Crossroads and BeMe are both pureplay brands.
Revealing its “Focus on Core” plan on Monday, Mosaic said it would now capitalise on and invest in its Millers, Noni B, Rivers and Katies brands, along with a standalone online Mosaic marketplace.
“Whilst the operational details of the rationalisation plan, including store closures, continue to be worked through, we will seek to minimise the impact on our team, including where possible reassigning impacted team members into roles within the five core brands,” Ms Berchtold said.
“Our Focus on Core is a growth-driven strategy to retain existing customers and attract new ones. Central to this strategy, Mosaic will continue to focus on servicing regional Australia.”
Mosaic also said it was continuing to finalise its annual results, blaming “events after the reporting period, which will impact the disclosures accompanying the audited results”.
It comes as Mosaic was suspended from trading on the ASX earlier this month after it failed to meet a reporting deadline.
Its shares will remain suspended from trading until it has lodged its annual financial report.
Mosaic in early August confirmed it had entered so-called safe harbour arrangements, allowing the board to remain control of the embattled fashion retailer as it seeks to trade out of its financial difficulties.
Entering safe harbour arrangements means a company can address financial distress behind the scenes without the need to notify the market.
The embattled retailer is also facing legal action from the competition watchdog for allegedly failing to deliver products to its customers within advertised timeframes.
