Mosaic Brands Limited, company behind long-running Australian clothes retailers, in administration

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Mosaic Brands Limited, the company behind five Australian clothes retailers including Millers, Katies and Rivers, is on the verge of collapse.

shuttered five of its brandsIn a statement to the ASX this afternoon, the company said a restructuring effort had fallen through after a "small number" of stakeholders refused to back it.Mosaic Brands Limited, which runs Rivers and a host of other stores, has gone into administration.

"The group's leadership received the support of a significant majority of its commercial partners and was confident that the restructure would be in the best interests of all stakeholders, resulting in a more focused and financially stronger retailer, with the expectation that its securities would resume trading on the ASX," the statement said.

"However, a small number of parties declined to support the restructuring proposal or negotiate a commercial outcome, and a commercially acceptable resolution could not be reached with the ACCC.Vaughan Strawbridge, Kathryn Evans, Kate Warwick and David McGrath of FTI Consulting were appointed administrators.

"Management intends to progress its brand rationalisation and wider restructuring plan, and to focus on the key Christmas and holiday trading period," the statement said. "The board wishes to reiterate its belief to those who supported the restructure, to Mosaic's customers and, most importantly, to Mosaic's dedicated team across Australia, that the business has a long-term future."

 

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