Mosaic Brands To Close Over 200 Stores, Shutter 5 Labels In Sweeping Overhaul
Australian fashion retailer Mosaic Brands is slashing its portfolio by shutting down five brands facing operational issues and announcing the closure of over 200 stores in a sweeping overhaul to revive the company's financial health.
The brands getting the axe are Rockmans, Autograph, Crossroads, W Lane, and BeMe. Following the closure of its doors, Mosaic will focus on its five other brands -- Katies, Millers Noni B, Rivers, and its standalone Mosaic marketplace, Mosaic Brands, CEO Erica Berch told Nine News.
"Mosaic will wind down five brands which have become marginal and non-core, allowing us to focus on five core growth brands," Berchtold said in a business update. "Each of those core brands will have a clearly differentiated market proposition, target customer, price point and product range."
In addition to refocusing the resources, Mosaic's major restructuring plan includes revamping the regional stores across Australia, Berchtold said.
"Our Focus on Core is a growth-driven strategy to retain existing customers and attract newones," she said. "Central to this strategy, Mosaic will continue to focus on servicing regional Australia."
Mosaic Brands' store closures were the latest development after the company implemented safe harbor provisions in August, permitting confidential financial restructuring.
"Whilst the operational details of the rationalization plan, including store closures, continue to be worked through, we will seek to minimize the impact on our team, including where possible reassigning impacted team members into roles within the five core brands," said Berchtold, per Business News AU.
"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."
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