New documents released by FTI Consulting confirm that collapsed apparel business Mosaic Brands had an accumulated loss of around $346 million over the last five financial years.
The latest revelation comes several months after the managing company – which owned 10 online and retail brands, including Noni B, Katies, Millers and Rivers – fell into voluntary administration, appointing FTI Consulting’s Vaughan Strawbridge, Kate Warwick, David McGrath, and Kathryn Evans as voluntary administrators.
Meanwhile, KPMG’s David Hardy, Gayle Dickerson, Ryan Eagle and Amanda Coneyworth were appointed as receivers and managers.
The comprehensive report was also shared via an ASX release, which noted that FY19 was the last year that Mosaic Brands generated sufficient profits to declare a dividend. But by FY25 year-to-date, the group’s accumulated losses on the balance sheet were around $346 million, with the group’s net asset position deteriorating from around $103 million in December 2019 to negative equity of around $170 million in October 2024 – a negative movement of around $272 million.
Alongside the profit slips, the group experienced a decline in revenue year-on-year, dropping from $713.58 million in FY20 to $424.83 million in FY24.
The drop in revenue was matched with a drop in expenses over the same period, falling from $450.22 million in FY20 to $248.27 million in FY24. The documents note that FY24 numbers are still in draft phase.
In FY25 year-to-date, sales hit just $107.51 million, which would have been impacted by the voluntary administration appointment, which commenced in late October 2024. Mosaic Brands’ net profit after tax (NPAT) in the current financial year is negative $34.47 million.
The report added that FY20 was the first financial year since 2016 when the group’s revenue declined, with Mosaic attributing the fall to the summer bushfires between 2019 and 2020 and the Covid-19 pandemic.
The year-to-date management accounts as at October 27, 2024, reported a loss after tax of around $34 million and a negative net asset position of around $170 million.
A second creditors' meeting is set for June 20, with the administrators’ opinion being the Mosaic Brands business should be placed into liquidation. All staff of Mosaic Brands at the time of its VA are expected to be paid in full, with first-ranking creditors set to gain 98 cents on the dollar. Second-ranking and unsecured creditors are expected to receive low to no return.
The report also noted that the intellectual property of Katies, Millers, Noni B, Rockmans and Rivers has been sold to new owners.