500 jobs gone as receivers axe 160 Katies, Millers, Rivers and Noni B stores by mid-January

Nearly 500 staff of collapsed Mosaic Brands will lose their jobs by the start of next year as the group’s receivers close 160 stores and wind down the Katies brand as part of a “consolidation program”.

KPMG, appointed as receivers in October, announced they would close all 80 Katies stores, as well as an additional 80 locations across the Millers, Rivers and Noni B brands by mid-January.

Impacted employees and landlords will be notified as soon as possible.

In a statement on Tuesday, KPMG said the decision was made following a review of Katies performance as a brand and the wider store network.

“Since the date of appointment, the receivers and managers have stabilised operations, continuing to trade the businesses of the group while engaging with suppliers to release stock for the crucial Black Friday and Christmas trading periods,” it said.

“The stores identified to close have been loss making resulting in the decision to close them in January.

“The receivers and managers would like to thank all employees, particularly those whose tenure is coming to an end, for their commitment and support through the receivership process.”

The ASX-listed company fell into administration in October after it failed to secure support for a restructuring plan. It owes creditors $249 million.

KPMG said the store closures would not impact the sale of Mosaic Brands, being run by FTI Consulting in their capacity as administrators.

More than 12 potential buyers have expressed interest to FTI, which expects binding offers by the end 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 administrators said previously.

Prior to entering administration, Mosaic told investors 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. Over 200 stores were closed as a result.