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Mosaic Brands Limited, formerly known as Noni B Limited was an Australian fashion retail company. It operated 715 stores across Australia under the brands Millers, Rockmans, Noni B, Rivers, Katies, Autograph, Crossroads, W. Lane and Beme, most of which got from acquisitions namely of the portfolio of City Chic Collective. The company's core market was women over the age of 50.
In 2024 it was placed into voluntary administration with administrators appointed from FTI Consulting and receivership from KPMG after not gaining approval on an emergency restructure. It announced it would wind down the Rockmans, Autograph, Crossroads, W.Lane and Beme brands, with receivers later winding down the Katies brand as part of extended store closures, followed by the Rivers brand. It then announced that Mosaic Brands would be placed into effective total liquidation with the permanent closure of remaining brands Millers and Noni B. All remaining stores would have closed around late April, and their websites went offline on 16 March, after the sale of any of the brands was reportedly unsuccessful.
Secured creditors are reported to able to be paid in full, with the government fast-tracking employees, with uncertainty and possible legal proceedings for other creditors.
By 1989, there were 38 Noni B stores in New South Wales and Victoria. Kindl's friend wanted to leave the business so Kindl purchased his stake in the company for $1.2 million. In 2000, Noni B listed on the Australian Securities Exchange.]]In 2003, Noni established Liz Jordan, a new brand aimed at younger, more upmarket customers. Liz Jordan products were sold in dedicated stores and in many Noni B stores. Although Noni B planned on moving upmarket with Liz Jordan, its products struggled to command higher prices because they were sold in Noni B stores. In August 2006, Noni B launched a new concept called La Voca, aimed at a similar demographic to Liz Jordan but with greater separation from Noni B. At the same time, the company closed its Liz Jordan stores, rebranding them as Noni B or La Voca stores. Liz Jordan products continued to be sold in Noni B stores. In June 2008, Noni shut down the loss making La Voca venture. About half of the 19 La Voca stores were rebranded to Noni B stores.
In September 2014, private investment firm Alceon Group attempted a takeover of Noni B. The Kindl family sold their 42 per cent stake in Noni B to the firm. However, Alceon was blocked from taking the company private when Gannet Capital acquired a 12 per cent stake in Noni B. In November 2014, Scott Evans was appointed CEO of Noni B. In December 2014, Noni B bought two brands—Queenspark and Events—for $675,000.
In May 2021, the company was fined $630,000 by the Australian Competition and Consumer Commission (ACCC) for making false or misleading claims pertaining to hand sanitiser and face mask products. The company was also fined $266,400 in September 2022 for false claims regarding two other products. Mosaic Brands said the two products were from "third-party sellers" and "neither product was ever purchased by a customer".
Mosaic purchased the remaining 49.9 per cent stake in EziBuy in October 2021 for $11 million. In April 2023, Mosaic placed EziBuy into administration, with plans to restructure it. With this the remaining stores were closed down and the retailer went online only. The brand entered liquidation in July 2023 with creditors owed more than $100 million.
In May 2023, Mosaic was fined $29,000 after it pleaded guilty to 324 offences of underpaying long service to workers. The court found that while the underpayments were not deliberate, they occurred due to a lack of care and diligence.
Erica Berchtold was appointed CEO of Mosaic Brands in February 2024. The following month, the ACCC brought proceedings against the company for allegedly making false or misleading representations to consumers about delivery timeframes and their rights regarding refunds for faulty products.
The creditors' meeting has revealed an estimate of $240 million in debt from a laundry list of creditors, but the true extent has not been disclosed and some debts overlap. A sale process is underway, with a dozen interested parties and hints at breakups and resumed store closures, staving a complete receivership and liquidation. The receivership has also left Bangladeshi suppliers out of pocket and owing unpaid wages (but were crammed down in previous arrangements), and brought shame on the industry from Oxfam and Bangladesh Garment Manufacturers and Exporters Association with accusations of exploitation and inadvertent free labour, and fears of seamstresses going hungry. Administrators have tried to assure creditors that entitlements shall be paid in full, despite the receivership (which usually secured debt) and heavy debt.
Administrators allege the company may have been under safe harbour as early as late 2022. It was pressured to disclose that the company was under safe harbour in August 2024.
On 10 December, receivers announced that the entire Katies brand and an additional combined 80 Millers, Rivers and Noni B stores would be closed down by mid-January 2025, affecting 480 employees. It comes after receivers weeded out remaining underperforming stores and buyers saw the Katies brand as an 'uneconomical' blight that would 'present difficulties' for them. Administrators have been meanwhile trying to sell the group, with the deadline extended from 13 December to the end of December 2024.
On 23 January, whilst aforementioned fire sale started to slowly take effect store-by-store, receivers announced that Rivers and now all its 136 stores will close down by mid-April affecting another 650 employees, after also failing to find a buyer for the company.
Administrators weren't drawn on how what ended up being a 'complete' receivership will affect the payment of creditors, particularly the unpaid factory workers, saying they will do some final investigations and hold a creditors meeting in May 2025. On 28 February, the federal government announced they will fast track workers entitlements owed by the company. The company was later also referred to the Australian Securities and Investment Commission by out of pocket suppliers for alleged misconduct. ASIC says they may pursue legal action but there is no evidence to suggest any wrongdoing at the moment.
Final debt tallies were reported to be over $318 million, with $76 million owed wages and loans to be paid but uncertainty about the rest. It was also reported that prospective buyers were unsure about "historical indebtedness" and lack of new supplies and a future for the brands. Jason Andrew from SmartCompany blames a convoluted, aggressive expansion strategy of Noni B that disregarded suppliers, acquired already-struggling chains at bargain prices, "stretched the thin", and came to a head during the pandemic for the total collapse of the company, suggesting the company may have been financially troubled since all the way back in 2000, and also suggesting other factors such as the brands being very similar and targeting the exact same aging demographic with no pull from younger ones. It was reported that the acquisition of Specialty Fashion Group was purported as a strategic turnaround point in the company, only for the pandemic to occur shortly after and cause a near-collapse of the company, and the acquisition to contribute to the total collapse of the company.
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