Thousands of Mosaic Brands workers given early access to entitlements

More than 2800 people employed by the clothing retailer have been given access to a federal workers’ entitlements scheme.

Noni B and Millers fashion stores will be closed across the country in the coming months.

Thousands of retail staff who lost their jobs due to the collapse of major clothing retailer Mosaic Brands Group will be granted early access to a federal workers’ entitlements scheme.

The federal government on Friday said it had fast-tracked access for more than 2800 workers to unpaid entitlements under its Fair Entitlements Guarantee, as almost 700 fashion stores owned by the group close.

Receivers for the business in January revealed Mosaic Brands’ entire retail portfolio had collapsed after they failed to find a buyer for the final two surviving brands, Millers and Noni B.

Mosaic Brands entered receivership in October, forcing the closure of brands Rivers, Rockmans, Autograph, Crossroads, W Lane, BeMe, and Katies.

Employment and Workplace Relations Minister Murray Watt said the government recognised the closure had been a “stressful, drawn-out process for a group of workers who depend very heavily on their pay coming in”.

“Around Australia approximately 320 stores are still operating – progressively closing down as they run out of stock and employees are then let go,” Mr Watt said.

“Staff are largely women, many balancing part-time employment with care responsibilities, and highly reliant on their pay, so we want to ensure they have as much certainty as possible around their finances going forward.

“I’m very pleased the Albanese government has stepped in to ensure workers will get their entitlements paid earlier.”

The Fair Entitlements Guarantee is a taxpayer-funded scheme with an annual cost increasing to more than $300m this financial year and projected to remain above $250m a year until 2028.

Under the scheme, workers are normally able to claim up to 13 weeks of unpaid wages where the employer has collapsed and no alternative avenue exists to fund their entitlements.

The government’s announcement means affected workers will be able to access the scheme as soon as their employment ends instead of waiting until Mosaic Brands is placed into liquidation.

The exact timing of individual store closures will vary depending on stock levels, however all stores are expected to close by mid-April, according to KPMG receiver David Hardy.