Australian fashion group Mosaic Brands has reacted to media reports that the business has entered safe harbour arrangements.
Earlier this week, the Australian Financial Review reported that the business - which manages several fashion brands including Rivers, Noni B and Millers - entered ‘safe harbour’, a provision where company directors can remain in control of a troubled business in order to restructure it and trade out of its difficulties.
This comes as Mosaic Brands reported a trading loss for FY24, alongside an overhaul of its logistics and warehousing which is impacting operations.
In a statement today, Mosaic Brands confirmed that its directors have and continue to take advice from advisors on their ongoing duties.
“These fiduciary obligations are matters the board has always taken seriously and we confirm that the advice provided has extended, from time to time, to considering the applicability of and compliance with the safe harbour provisions as outlined in the Corporations Act 2001 (Cth) for the directors.
“The group confirms that during this time, Deloitte has been advising the company on refinancing considerations that have previously been announced to the market.”
The group then highlighted the operational issues that are impacting the business in recent months.
“These are being worked through by the directors, management and its advisors, and the group anticipates a recovery in its trading performance through the course of H1 FY25 once these operational issues are resolved.
“We also confirm that the senior secured creditor of the group remains supportive, and we continue to work with our suppliers to deliver for our customers.
Mosaic Brands will report its FY24 results on Wednesday, August 28, including an outlook for the first quarter of FY25.