Popular fashion retailer Katies will close down dozens of stores as its parent company Mosaic Brands Group makes further cuts to ‘consolidate’ its business.
The Katies brand will cease to exist when all 80 stores across Australia are closed by mid-January.
An additional 80 Millers, Rivers and Noni B stores will also permanently shut down around the same time.
The mass store closures will mean about 480 staff across all of Mosaic Brands’ chains will be out of a job in the new year, 7 News reported.
Employees and landlords of impacted stores will be notified as soon as possible.
KPMG, who has been working with administrators FTI Consulting since Mosaic Brands entered administration in October, said the decision followed a review of the business.
‘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 statement said.
All 80 Katies stores across Australia will be shut down by mid-January
The decision to close down all Katies stores comes weeks after parent company Mosaic Brands went into voluntary administration
The once thriving Mosiac Brands operated about 700 stores across Australia and has 2700 employees.
But the company reportedly owed creditors $249 million when it entered voluntary administration in October.
Shortly before the announcement, Mosiac Brands closed down all Rockmans, Autograph, W. Lane, Crossroads and BeMe stores.
About 231 shops were impacted.
Mosaic chief executive Erica Berchtold at the time said the closures were to ‘rationalise its brand portfolio’ and simplify the business, allowing it concentrate on ‘core growth brands’ Millers, Noni B, Rivers, Katies and its online Mosiac marketplace.
There will be a smaller footprint of Noni B stores across the country, as well as Rivers and Millers shops (pictured a Noni B store)
The first Katies store opened 70 years ago in 1954 in Adelaide’s Rundle Mall and two years later, launched a brand of affordable and fashionable clothes for Australian women.
The latest development announced on Tuesday means Millers, Rivers and Noni B will operate with a smaller physical presence.
‘The decision to undertake the store consolidation program has not been taken lightly,’ KPMG said.
‘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.’
Despite the store closures, KPMG said it would not affect the sale of Mosaic Brands Group.
Interested parties have until the end of December to submit binding offers.
Daily Mail Australia contacted KPMG for further comment.
