'Makes no sense': Major retailer slams government after shutting 1379 stores

The head of one of Australia's largest fashion retail groups has slammed the government's handling of the coronavirus pandemic, saying it has caused "chaos and confusion" for businesses.

Mosaic Brands, which owns labels such as Noni B and Rivers, will shut its 1379 stores across the country and stand down 6800 staff, a move chairman Richard Facioni said the company was forced to take after being let down by the decisions coming out of Canberra.

Chairman Richard Facioni and CEO Scott Evans have slammed the government's management of the coronavirus crisis. Credit: James Alcock

"There hasn't been the level of decisiveness that we expected from the government. If you look at what happened over the weekend, it was chaos and confusion," he told The Age and The Sydney Morning Herald.

On Sunday night confusion reigned as the state and federal governments implemented varying levels of lockdown measures which worsened on Wednesday as more incremental lockdowns were put in place, banning spaces such as food courts and beauty salons, but allowing general retailers to keep trading.

Mr Facioni, who is also the executive director of investment company Alceon, pointed to the action taken in New Zealand, where almost all businesses will shut for four weeks in a nationwide lockdown, saying it was a clear and decisive move.

"We've made the very tough decision to close the stores as of tonight, but we couldn't go any longer with this level of confusion. We just had to make the call ourselves," he said.

"This incremental approach is just prolonging the agony. Let's get this over and done with, just go into a shutdown."

All of Mosaic's store operations will be suspended from Thursday onwards, due in part to sharply declining sales and in part due to strict new social distancing rules, which the company said made it impossible for it to keep serving customers.

The company's stable of brands also includes W.Lane, Millers, Crossroads, Autograph, Beme, and Rockmans.

Mosaic chief executive Scott Evans echoed Mr Facioni's comments, further questioning Canberra's decision to limit funerals to just 10 people but keep retail shops open.

"You can't bury your loved one, but you can buy a t-shirt in a shop? Just makes no sense," he said.

The company is one of the retailers hardest hit by the coronavirus pandemic, as both its customers and shop attendants are often older Australians, and are therefore more vulnerable to COVID-19.

Nearly 7000 stood-down team members will be granted access to leave entitlements while the company reviews what government support may be available. The company will also look to reduce costs elsewhere in the business, with the executives saying the company was effectively "on pause".

Both called on the government to introduce a form of wage subsidy for furloughed workers, concerned if unemployed Australians don't receive wage support, businesses will not be able to recover once the virus passes.

"Once we're through this, we'll bring the business back online, but to do that you have to have the people there ready to come back on," Mr Facioni said.

"So they have to survive in the meantime. A wage subsidy would go a long way to ensuring that."

Online operations will continue to run during the shutdown period. The retailer did not specify how long the shutdown would last.

On Tuesday, Michael Hill jewellers announced it would also indefinitely shut its 300 stores globally due to the coronavirus pandemic, and children's retailer Kidstuff will also close 58 stores nationally. It is expected a number of retailers will follow suit in the coming days.

Mr Evans says the "one positive" from the news is the reaction from staff who have been overwhelmingly supportive and understanding of the company's decision, he says.

"The way that they've embraced it and the messages [we've received] have been quite staggering in terms of what human beings are capable of in times of despair like this," he said.