Australian apparel business Mosaic Brands will wind down and exit five of its brands in a bid to rationalise its portfolio.
As part of a Focus on Core plan, Mosaic CEO Erica Berchtold confirmed that it will exit Rockmans, Autograph, Crossroads, W.Lane and BeMe brands, including stores and websites.
Rockmans, Autograph and W.Lane together have over 200 stores across Australia, according to Mosaic Brands’ 2023 annual report.
Crossroads and BeMe are both pureplay brands.
Berchtold said the group would rationalise its brand portfolio as part of driving simplification across the business and focusing resources.
“Mosaic will wind down five brands which have become marginal and non-core, allowing us to focus on five core growth brands,” she said.
“Each of those core brands will have a clearly differentiated market proposition, target customer, price point and product range.”
The group will now capitalise on and invest in its Millers, Noni B, Rivers and Katies brands, along with a standalone online Mosaic marketplace.
“Whilst the operational details of the rationalisation plan, including store closures, continue to be worked through, we will seek to minimise the impact on our team, including where possible reassigning impacted team members into roles within the five core brands,” Berchtold said.
“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.
Mosaic will provide further detail on its operational restructure and Focus on Core strategy in the coming weeks.
The news comes as Mosaic was suspended from trading on the ASX after it failed to meet a reporting deadline.
Mosaic confirmed it is continuing to finalise its FY24 annual results.
“Whilst this has taken longer than anticipated, Mosaic will lodge its appendix 4E and audited annual financial report once they are finalised,” the company shared in a statement. “The delay is due to events after the reporting period, which will impact the disclosures accompanying the audited results. Mosaic expects its shares to be lifted from suspension following lodgement of its audited financial results.
“Mosaic has made considerable progress over the past few weeks to accelerate its plan to re-align and simplify its operations, as foreshadowed in its announcement of August 30th. This includes rationalising the Group’s brand and store portfolio, with a view to reducing costs and improving its working capital position, as outlined below.
“It is undertaking this process in consultation with, and working closely with, its relevant partners and stakeholders, and continues to have the support of its senior lender.
“Whilst still not finalised and with discussions continuing, Mosaic is working towards a positive resolution to the process.”