About 500 people will lose their jobs in the New Year when 160 retail stores shut down across Australia

About 500 people will lose their jobs in the New Year as Mosaic Brands shuts down 160 retail stores across the nation.

Katies stores will be shut down nationally next month along with 80 other stores owned by Mosaic Brands seeing 480 people lose their jobs in the New Year.

The Australian retailer, which also owns Millers, Rivers and Noni B, entered voluntary administration in October.

A month before the company went into receivership it shut down its other brands including Rockmans, Crossroads, W Lane, BeMe and Autograph.

In addition to all Katies stores being shut down nationally, 80 other stores across Millers, Rivers and Noni B will also close. Picture: NewsWire / Steven Saphore

Receivers and managers at KPMG advised the decision to shut down the stores came after a performance review of the Katies brand and wider store network.

The receivers identified the stores that would be closed had been making a loss, which resulted in the decision to close them in January.

“The receivers and managers of the Mosaic Brands Group have made the difficult decision to commence a store consolidation program which will impact approximately 160 stores across the group’s portfolio,” a spokesman said.

About 480 people will lose their jobs in January as Mosaic Brands moves to shutdown its Katies stores and 80 other retail outlets across Rivers, Millers and Noni B. Picture: Supplied

“Impacted employees and landlords will be notified as soon as possible.”

A spokesman said the decision to close the stores had not been taken lightly.

“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.”

In November, it was revealed the company owed about $249m to 171 creditors and an undisclosed amount to 300 employees.

Mosaic owes 23 Bangladeshi garment factories more than $30m. Workers earning a few hundred dollars a month told the ABC they were worried about feeding their families.