Noni B, Rivers owner Mosaic Brands owes $250m with sale process under way

The collapsed retailer behind Noni B, Millers, Katies and Rivers owes nearly $250 million to various entities but administrators say there are potential buyers.

The ASX-listed company late last month appointed FTI Consulting as administrators and KPMG as receivers after it failed to secure support for a restructuring plan.

The minutes of the first creditors’ meeting filed with the Australian Securities and Investments Commission has now revealed that an estimated $249m is owed to 171 creditors, including landlords and inventory suppliers.

That figure could change once administrators table their final report.

More than 300 employees are also owed but the exact amount was not disclosed.

The minutes also revealed that administrators were seeking buyers for the failed business, with more than 12 interested parties. Final binding offers are due at the start of December.

“The key goal is to achieve a successful sales process, as a liquidation or shutdown of the companies would not be in the best interests of creditors,” the report said.

The administrators say they are confident that some staff can be redeployed and “expect to be able satisfy employee entitlements in full”.

“In relation to the store closure program which is being considered, the administrators are aware that KPMG is working on re-deployment opportunities for affected staff to ensure continuity of employment of as many staff as possible,” the report stated.

Mosaic Brands told investors last month it had “progressed plans to restructure, realign and simplify” its operations — which included slashing costs and axing the Rockmans, Autograph, Crossroads, W Lane and BeMe.

The board at the time said a “small number” of stakeholders had not supported the proposals. Mosaic Brands has more than 700 stores and 10 online platforms.