An Australian fashion retailer with approximately 2,700 employees across 700 stores has entered voluntary administration. Mosaic Brands is behind popular retailers like Katies, Rivers, Millers and Noni B.

The ASX-listed retailer made the announcement on Monday, appointing Vaughan Strawbridge, Kathryn Evans, Kate Warwick and David McGrath from FTI Consulting as administrators. The group is now seeking to “capitalise and invest” in five core brands after a recent downsize.

Mosaic closed about 200 stores when brands like Crossroads, Rockmans, Autograph, W.Lane and BeMe were abandoned last month

“Following recent attempts by the company to informally restructure its operations, the Board of Mosaic has determined that voluntary administration is now the most appropriate way to restructure the group,” the company said.

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”With the group continuing to trade, management intends to progress its brand rationalisation and wider restructuring plan and to focus on the key Christmas and holiday trading period.”

Shares in the company have plummeted in the past 12 months, tumbling from 10c to 3.6c to give the business a market capitalisation of just $6.4 million.

Mosaic CEO Erica Berchtold was confident the company could turn the business around.

“Mosaic Brands continues to be an exciting opportunity to reshape a business with a clearly defined market proposition for its target customers, and employees, that we can be proud of,” she said on Monday.

“Our priority is to accelerate the rationalisation plans we have in place to focus on the core brands to service current and attract new customers across metropolitan and importantly regional Australia.”

KMPG has been named as receivers to collaborate on a restructure and oversee trading operations.

“We will be seeking to stabilise the operations of Mosaic to preserve the underlying value of the business while endeavouring to serve its customers, with support from its employees and suppliers to minimise business interruption,” KPMG partner David Hardy said.

“The Mosaic Brands group owns a portfolio of iconic fashion labels whose clothing and products are much loved by generations of Australians.”

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