When it launched in Adelaide more than 60 years ago, Katies quickly became a fashion favourite for Aussie women.

But now it’s closing its doors alongside a number of its budget-friendly stable-mates.

Millers, Katies, Noni B and Rivers are all part of Mosaic brands owing creditors almost $250 million.

READ MORE: ‘You’ve got to anticipate your illness’: GP drought puts rural Aussies’ lives at risk

Earlier this year Mosaic tried to salvage the company by closing 231 stores across labels Autograph, W Lane, Rockmans, Crossroads and Beme.

But this week, the clothing crisis worsened.

An additional 160 stores are set to disappear from shopping centres from January, including dozens of Katies, Millers, Rivers and Noni B stores nationwide.

Retailers closing their doors are blaming a mix of soaring operational costs and tightening wallets for the decision, evidenced by a sharp rise in insolvencies this year.

Leading retail expert professor Gary Mortimer said the similarity of Mosaic brands may have contributed to the collapse.

“Ultimately, what they’ve done is self cannibalisation,” Mortimer said.

“When you think about the brands that Mosaic have, they’re almost competing for the same customer – women’s fashion, mid-tier, mid-priced, aimed for middle aged customers.”

The cuts are expected to impact around 480 employees, but it’s hoped the move could save the failing business.

“I guess the good news here is that the new model of Mosaic, which will be a smaller range of businesses, around about 530 businesses now, come January 2025 will be a profitable business – at the moment it’s not,” Mortimer said.