The axe has fallen on the fashion brands Millers and Noni B, the last remaining retailers from the troubled Mosaic Brands group. Following the inability of receivers from KPMG to find potential buyers for these brands, the decision to close down operations was confirmed on Wednesday. This closure will result in the shuttering of 252 stores, including 11 located across New Zealand, and it will leave approximately 933 employees facing redundancy.
David Hardy, the KPMG partner managing the receivership, conveyed the disappointing news, saying, "Despite the best efforts of all parties, we have been unable to achieve a sale of any of the brands within the Mosaic portfolio. Consequently, all stores within the Mosaic Brands Group will be wound down over the coming months, and we expect all locations to be closed by mid-April." This marks another significant blow for the retail sector, which has been grappling with numerous challenges.
The closures of Millers and Noni B come on the heels of the recent announcement detailing the demise of the Rivers brand, which also implicated the loss of around 650 jobs following the shuttering of 136 stores. The overall impact of this downturn within Mosaic Brands means almost 3,000 jobs will be lost across the entire portfolio due to these closures.
On October 28 last year, Mosaic Brands entered voluntary administration, amid mounting financial difficulties. Mosaic had already begun winding down some of its other brands such as Rockmans, Autograph, Crossroads, W Lane, and BeMe. Industry experts and insiders have characterized the situation as indicative of broader struggles within the retail environment.
RMIT’s fashion industries expert Dr. Carol Tan weighed in on the situation, stating, "While the news isn’t really surprising, considering the financial struggles and the current retail environment, it remains disheartening." She pointed out the increasingly competitive market driven by online shopping and shifting consumer habits, emphasizing how these factors have exerted significant pressure on brick-and-mortar retailers.
The receivers have expressed gratitude toward the Mosaic management team, employees, customers, and suppliers during this tumultuous phase. Hardy noted the challenges and the communal support experienced throughout this process. "The receivers would again like to acknowledge and thank the Mosaic management team, employees, customers, and suppliers for their support throughout the receivership process," he stated.
The announcement concerning Millers and Noni B aligns with the growing trend of fashion retailers facing insurmountable challenges and financial strife, as the economic pressures weigh heavily on traditional retail models. The massive surge of online shopping during the pandemic, coupled with changing consumer preferences, has continued to change the retail paradigm.
For the immediate future, the receivers have indicated the timing for the closures of individual stores will vary based on stock levels and sell-through rates. Closing-down sales and promotions will be organized as these stores conclude operations, offering some final chances for customers to shop at their local outlets.
Mosaic Groups' retreat from the market signifies the end of longstanding brands with rich histories. The Noni B label, founded back in 1977, and Millers, established later, both played various roles within the Australian retail market before their demise.
The winding down of Noni B and Millers serves as yet another reminder of the precarious state of traditional retail. Receivers have confirmed they will run sales events, urging customers to visit stores or online platforms to purchase remaining inventory. This closure event serves as bittersweet news for loyal customers who have long supported the brands.
Outside of the personal impact on employees and customers, this saga may serve as food for thought for other retailers contemplating their sustainability and positioning within the fast-evolving market trends. Experts suggest this situation may prompt other brands to rethink their strategies and adapt to changing consumer behaviors and market demands. The Mosaic Brands saga, with its significant rippling effects felt through closures and job losses, paints a stark picture of the difficulties facing the retail industry.
Overall, the wind-down signifies not just the loss of shops but also the erasure of brand identities and legacies intertwined with customer relationships. With the upcoming closures set for April, the fate of these brands marks the end of what was once viewed as flourishing retail ventures.