Women’s clothing line Katies will be wound down while dozens of Millers, Rivers and Noni B stores will close as struggling Australian fashion retailer Mosaic Brands undergoes a “consolidation program” that will cost hundreds of staff their jobs.

A line will be drawn through Katies as a brand and the shutters will be brought down on all 80 of its stores by mid-January, it was revealed on Tuesday.

A further 80 Millers, Rivers and Noni B brick-and-mortar shopfronts will shut in the same period.

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The wide-ranging cuts will impact about 480 employees from across the clothing brands.

Receivers and managers KPMG, which was appointed to work alongside administrators FTI Consulting after Mosaic entered administration in October, said the decision was made following a review of Katies and the wider store network that identified “loss making” shops.

“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 said in a statement.

Mosaic Brands had operated about 700 stores across the country.

The company entered voluntary administration in October, reportedly owing creditors $249 million.

That development came about a month after it announced it was axing businesses Rockmans, Autograph, W.Lane, Crossroads and BeMe.

That decision meant the closure of 231 stores.

At the time, Mosaic chief executive Erica Berchtold said the move to “rationalise its brand portfolio” would simplify the business and allow it to focus on “core growth brands” — Millers, Noni B, Rivers, Katies and its standalone online Mosaic marketplace.

Now, Katies will be shut for good and Millers, Rivers and Noni B will be run with a smaller cross-country footprint.

“The decision to undertake the store consolidation program has not been taken lightly,” KPMG said on Tuesday.

“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.”

KMPG said the store closures would not impact the sale of Mosaic Brands Group.

“Following submissions of non-binding indicative offers in late November, short-listed parties have been undertaking due diligence on the group,” KPMG said.

“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.”