Australia's largest women's fashion retailer group says it plans to shutter five of its brands and close stores as it works to put its finances on a sound footing.
Mosaic Brands said on Monday it would exit half of 10 brands, including all stores and websites.
Mosaic said closure of the Rockmans, Autograph, Crossroads, W.Lane and BeMe brands would allow it focus on its Millers, Noni B, Rivers and Katies brands, as well a standalone online marketplace.
"Each of those core brands will have a clearly differentiated market proposition, target customer, price point and product range," chief executive Erica Berchtold said.
The other brands had become "marginal and non-core," she said.
Operational details of the plan, including how many stores will close, are still being worked through.
According to Mosaic's 2023 financial report from August 2023, it had 150 Rockmans stores, 49 Autograph stores and 32 W.Lane stores, while BeMe and Crossroads exist as online-only stores.
Some of the Rockmans, Autograph and W.Lane stores could conceivably be converted to its remaining core brands.
The group currently has a total of around 763 stores across Australia and New Zealand but has been trying to focus more on big-box Rivers megastores in regional Australia as part of its "BIG strategy".
Earlier this year Mosaic had problems as it migrated to a new fully integrated supply chain and distribution system with a new global partner, and had little inventory on hand for the key Mother's Day trading period.
The company's shares have been suspended from the ASX since September 2 because of a delay on filing its 2023/24 financial report, which was due in August.
Mosaic said on Monday the delay was due to events outside the reporting period, which would impact disclosures accompanying the audited results.
It was working with partners and stakeholders and had the support of its senior lender, Mosaic said.
In February, Mosaic said it made a $5.4 million net profit, up 38 per cent from the previous quarter.
But it also ended 2022/23 with a net liability position of $66 million, including $39 million in debt and $45 million in lease liabilities, which its annual report noted "may cast significant doubt on the group's ability to continue as a going concern".
At the time, Mosaic's board of directors expressed optimism the company would be able to pay its debts as and when they fall due.
