Signs point to liquidation for troubled Mosaic

Mosaic Brands owns Noni B, Millers, Katies and Rivers. Picture: Steven Saphore

Mosaic Brands’ voluntary administrator, FTI Consulting, has collected first-round bids for the failed retailer and the outcome, some sources say, further points to a liquidation.

While there were offers for all of the company as first-round bids were received on November 15, they were said to be underwhelming – pointing to a total liquidation of the business or only one or two brands preserved from the wreckage.

Mosaic Brands owns Noni B, Millers, Katies and Rivers. It already had announced it was closing the Rockmans and Autograph brands, along with Crossroads, W.Lane and BeMe.

But now the thinking is if the business does survive, the groups most likely to remain trading are Noni B and Millers. The possibility of Katies and Rivers surviving is considered remote.

Interested buyers were to gain access to a data room on November 18 before binding offers are due on December 6.

FTI Consulting and receiver KPMG will determine whether a potential sale will proceed five days after the final bid date.

The group has $317m of total assets and $383m of liabilities while 408 trade creditors are owed $142m.

There are 205 landlords for about 676 stores owed about $35m, and 2801 employees owed about $7.2m.