Online shopping retailer goes into administration as sales down 51%

The popular Australian brand has had to call in administrators as sales have dramatically plunged.

An online clothing retailer attached to an ASX-listed shopping giant has gone into administration.

Earlier on Monday, e-commerce brand EziBuy, which has an online presence across Australia and New Zealand, fell apart.

EziBuy was a subsidiary of Mosaic Brands, which in a market update warned that the outfit had been placed into the care of administrators.

Mosaic Brands sells nine prominent women’s clothes lines including Millers, Rockmans and Rivers but said the performance of EziBuy was “at odds” with the rest of its operations.

For instance, the fashion conglomerate has enjoyed a 23 per cent upligft in revenue for its online sales arm, and is up a total of 68 per cent since the Covid-19 pandemic started.

In contrast, EziBuy has suffered a 51 per cent decline in sales from June to December last year.

EziBuy has suffered a 51 per cent decline since the pandemic eased up.

EziBuy mostly sells women’s apparel online.

“The Board determined that it was in the Group’s best interests as a whole that the EziBuy business be restructured,” Mosaic said in a statement shared to the ASX.

Mosaic brought EziBuy into the fold right before the pandemic.

The company is still operating business as usual, with plans to restructure it under the guidance of Kate Barnet and Damien Hodgkinson of insolvency firm Olvera Advisors.

EziBuy will change to become a “simplified, profitable, cash-generative online-only operation”, the Mosaic group hopes.

The digital strategies of some of Mosaic’s other brands will be adopted for the struggling company.

EziBuy has no physical stores in Australia while it has four stores in New Zealand.

It delivers its products everywhere in Australia except Tasmania.

Mosaic Brands remains strong, they emphasised, with an 18 per cent increase post-Covid from physical store sales on top of its growing online sales.

The parent company of EziBuy is hoping to salvage the situation.

EziBuy is one of many to be added to a growing list of retailers struggling to turn a profit in a post-Covid world.

Last week, iconic music and entertainment retailer Sanity shut down all 50 of its stores across Australia as the pandemic took a toll on the business, but continues operate in a digital space.

In February, Australian prestige clothes firm Alice McCall went into liquidation. News.com.au reported on Friday that the company owes $1 million to creditors.

Then in January, furniture seller Brosa fell into liquidation after its restructuring attempt failed, leaving behind debts of $24 million, including $10 million to customers from unfulfilled orders.

In July last year, trendy sunglasses business Soda Shades also went into administration owing $2.3 million, and just a week before, sneaker company Sneakerboy also folded with $17.2 million owed to more than 100 creditors.

Online fashion giant Missguided also had no choice but to call in administrators after failing to secure a rescue bid, with big name brands like The Iconic and Myer selling its wares prior to its collapse.