The Katies business under the Mosaic Brands umbrella will be wound down according to the receivers and managers at KPMG overseeing the group that is currently in administration.
Alongside the closure of 80 Katies stores, another 80 across Millers, Rivers and Noni B will be shut down by mid-January 2025. Impacted employees and landlords will be notified as soon as possible, KPMG reported.
“The decision to undertake the store consolidation program has not been taken lightly.,” KPMG shared in a statement.
“Since the date of appointment, the receivers and managers have stabilised operations, continuing to the trade the businesses of the group while engaging with suppliers to release stock for the crucial Black Friday and Christmas trading periods.
“The decision was made following a review of the performance of Katies as a brand and the wider store network. The stores identified to close have been loss-making resulting in the decision to close them in January. “
Approximately 480 store employees will be impacted by the planned closures, KPMG added.
“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.
KPMG added that the store closures do not impact the sale process for Mosaic Brands, which is currently being run by FTI Consulting - the voluntary administrators.
“Following submissions of non-binding indicative offers in late November, short-listed parties have been undertaking due diligence on the group,” KPMG reported.
“Due to the ongoing due diligence and discussions with interested parties, FTI Consulting have advised parties that the deadline for binding offers has been extended until end of December 2024.”
Mosaic Brands entered voluntary administration on October 28, owing $249 million in total liabilities.