The Iconic’s former CEO to lead budget brands Rivers, Katies, Noni B

The former chief executive of The Iconic, Erica Berchtold, has been appointed to lead Mosaic Brands, which owns budget clothing brands such as Noni B, Katies and Rivers.

Berchtold departed the online fashion retailer after four years at the helm and was due to begin at Best & Less last September, but an off-market takeover saw businessman Ray Itaoui installed as chief executive of the discount chain.

Erica Berchtold will lead budget fashion retailer Mosaic Brands.Credit: Louie Douvis

Berchtold signalled she would be improving the design of Mosaic’s brands, with a focus on the fact that two-thirds of spending on clothing is by Australians aged 35 and older.

“You have people tripping over themselves to work out what a 20-year-old woman wants to wear when a 50-year-old spends the same or more on clothes and is likely online shopping just as much,” she told this masthead.

The digital fashion retail executive said she was excited by the opportunity to lead a “true omnichannel retailer”, which sold its clothes online and in physical stores.

“Low price is also not the antithesis of style,” she said. “I will be looking to amplify the pride in our brands and the people behind them, in providing affordable fashion for all.”

Mosaic chairman Richard Facioni, who owns the General Pants, SurfStitch, Ginger & Smart, National Geographic and Lego brands in Australia, said Berchtold brought more than two decades of experience in digital retail through her time leading The Iconic, and before that, Rebel Sport.

“Erica not only has the right skill set to drive the future direction of the group, but also a strong understanding of our customers as a former general manager of two of our brands,” he said.

Mosaic’s outgoing chief executive Scott Evans will remain with the business for three months to facilitate a smooth transition.

Facioni praised Evans for his work over the past decade in amalgamating nine unprofitable brands and putting the business back on its feet “operationally, strategically and financially”.

“He has now set the business up for success in the coming years, under new leadership, by building an online operation from the ground up, resetting our store strategy and broadening our customer base.”

Mosaic Brands – which also includes Millers, Rockmans, Autograph, W. Lane, Crossroads and Beme – has been executing a turnaround after COVID lockdowns led to falling demand at its shops, leading the company to scramble to expand online.

The fashion retailer booked more than $170 million in losses for the 2020 financial year, but managed to eke out a $2.7 million profit the following year.

Berchtold’s appointment coincided with the release of Mosaic’s results for the December half, during which its net profit jumped 38 per cent to $5.4 million. Sales dipped 10 per cent to $254.5 million.

However, Mosaic’s investors appear displeased with the update, sending the share price tanking to lose 23 per cent in Thursday’s trading session.

During the pandemic, Berchtold called for more support for the struggling retail sector and said the federal government’s JobKeeper program’s thresholds were too high to adequately help the industry.

Berchtold cited personal commitments as reasons for departing The Iconic. The online retailer, which is owned by Luxembourg-headquartered Global Fashion Group (GFG), has never turned a profit in Australia in its 13 years of operating in the country. Documents filed with the corporate regulator show a loss of more than $11 million for the 2022 calendar year in Australia, more than double its $4.7 million loss in 2021.

The Iconic made 116 roles redundant this year amid an organisational restructure and has back-paid former staff more than $1.5 million in underpayments. Former workers have also come forward to detail their experiences at the organisation, describing a culture where management turned a blind eye to staff concerns about pay and working conditions.

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