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Katies and Mosaic Brands Store Closures: 480 Jobs Lost as Iconic Retailer Shuts Down

Katies and Mosaic Brands Store Closures: 480 Jobs Lost as Iconic Retailer Shuts Down

Mosaic Brands Announces Store Closures

Mosaic Brands, the parent company of Katies, has revealed the closure of 160 stores across Australia. The move, announced on Tuesday, will see 80 Katies stores and 80 other outlets from Millers, Rivers, and Noni B shut by mid-January.

The decision affects nearly 480 employees, who will lose their jobs after the stores remain operational through Christmas.

The Decline of Katies

Katies, a household name in Australian fashion, has faced mounting challenges in recent years. Known for offering affordable workwear since opening its first store in 1954, the brand struggled to compete in the evolving retail landscape.

KPMG, acting as receivers for Mosaic Brands, announced the closures after reviewing the financial performance of the business.

The stores identified to close have been loss-making, resulting in the decision to close them in January,” KPMG said.

Figure 1: The first Katies store at Rundle Street Mall was marketed as an affordable option for women seeking workwear.

Financial Troubles Plague Mosaic Brands

Mosaic Brands entered voluntary administration on October 28, owing creditors $249 million. The company, which previously operated 700 stores nationwide, had already closed 231 outlets, including Rockmans, Autograph, Crossroads, W.Lane, and BeMe brands.

The receivers noted the decision to shut down Katies and other stores was not taken lightly.

“The receivers and managers would like to thank all employees, particularly those whose tenure is coming to an end, for their commitment and support through the receivership process,” KPMG said.

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The Legacy of Katies

Katies once held a cherished spot in Australian retail, providing stylish yet affordable clothing for working women. Advertisements from the 1970s highlighted the brand’s relaxed styles and timeless designs.

A 1978 ad described Katies as offering “relaxed styles, easy flair—plus a real talent for finding designs just right for winter.”

Customers shared nostalgic memories on social media, with one recalling a blouse purchased decades ago that “still looks great after hundreds of washes.”

Challenges in a Competitive Market

RMIT fashion expert Dr Carol Tan said Katies’ downfall was inevitable, citing challenges exacerbated by the COVID-19 pandemic.

“Given their number of bricks-and-mortar stores, they were severely affected by lockdowns and restrictions,” Dr Tan said.

She added that Mosaic Brands’ reliance on physical stores and slow transition to e-commerce made them vulnerable.

“Consumers shifted toward online shopping, but Mosaic struggled to adapt its operations accordingly,” she said.

Competition from Online-Only Retailers

Mosaic Brands faced increasing competition from ultra-fast fashion brands like Shein and Temu. These online retailers offered competitive pricing and flexible shopping options, drawing customers away from traditional stores.

“Mosaic Brands, which primarily targets women over 50, faced challenges in differentiating itself and attracting younger customers,” Dr Tan said.

Internal competition among Mosaic Brands’ overlapping businesses also weakened individual brand loyalty.

Rivers and Other Brands Impacted

In addition to Katies, other Mosaic Brands like Rivers, Millers, and Noni B are also closing stores. This decision marks a significant reduction in the company’s footprint and highlights the struggles traditional retailers face in today’s market.

A Difficult Goodbye for Employees

For many employees, the store closures bring an end to long-standing careers. KPMG assured staff and landlords that they would be notified as soon as possible.

Mosaic Brands stores will continue trading through the busy Black Friday and Christmas periods to stabilise operations.

What’s Next for Mosaic Brands?

Experts believe the closures signify the end of an era for Katies and Mosaic Brands as the retail landscape continues to evolve.

Dr Tan said Mosaic’s lack of adaptability in the face of changing consumer behaviour was a key factor.

“Mosaic Brands cannibalised its market with overlapping brands and slow e-commerce adoption, leaving them unable to compete effectively,” she said.

While the future remains uncertain, one thing is clear: the closure of Katies marks a significant shift in Australia’s retail industry.

Katies and Mosaic Brands Store Closures signal the end of an iconic brand while highlighting the challenges traditional retailers face in a rapidly changing market.

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