‘No timeframe’: Workers left unemployed by women's clothing empire collapse still waiting for payment

Retail workers who were left unemployed by the collapse of women’s clothing empire Mosaic Brands are still waiting for unpaid entitlements and have not been given a timeframe of when they’ll receive money owed.

The parent company of popular outlets Katies, Rivers, Autograph, Rockmans, Crossroads, W.Lane, BeMe, Millers and Noni B went into administration owing $250 million to creditors worldwide in October 2024.

Administrators attempted to sell some of the brands to another company, but were unable to do so, meaning stores across Australia have either closed or will wind up by mid-April.

Autograph Griffith in the Riverina shut its doors in October 2024, but four months later employees have still not received annual leave entitlements or redundancy pay, with long-term employees owed thousands of dollars.

Sharon Brown, who worked at the store for 15 years, says she is getting frustrated.

“They haven’t given us a date or a timeframe on when we might get paid,” she said.

“They have sent us an email saying it’s likely we will eventually get our money. But who knows when?

“I’ve learned to stop thinking about it, just to get it out of my head. I just have my fingers crossed that it will happen.”

Region asked the receivers of Mosaic Brands if and when employees will be paid.

“At this stage, the receivers are cautiously optimistic employees will be paid in full. However, the timeframe for payment of entitlements is not known,” a spokesperson said.

“In the interim, we are progressing the sale of residual assets including the brands and intellectual property. The store closure process is ongoing, and we anticipate all stores will be closed by mid-April 2025. Head office operations will be wound down very shortly thereafter.”

Thousands of employees have or will be left out of a job, mostly women who have few alternative employment opportunities in a declining retail sector.

“I really feel for my staff and all the other employees around Australia,” former Autograph Griffith manager Liz Purtell said.

“Many of them would really need those payments after losing their jobs.”

Ms Purtell has appealed to her union, the Shop, Distributive and Allied Employees Association (SDA), for help.

“The SDA has left no stone unturned in trying to secure all entitlements owed to Mosaic employees as rapidly as possible at this difficult and distressing time,” SDA National Secretary Gerard Dwyer said.

“The union has pressed the case for early payment with the receivers, the administrator and the Department of Workplace Relations in face of considerable complexity in the law.

“The SDA has engaged a receivership specialist who is directly engaged in the receivership process and has briefed SDA Mosaic members on developments.

“From day one, the SDA has been in regular contact with members to provide support and has been actively seeking to open doors for future employment opportunities.”

The SDA advises all members who have lost or will lose their jobs at a Mosaic Brands store to keep all records of their employment, entitlements and payslips.

If administrators do not recover enough funds to repay employees, the workers may have the option of being paid through the Fair Entitlement Guarantee (FEG), a federal government scheme that provides financial assistance to those who have lost their jobs through company bankruptcy.

Know more about this story? Contact Oliver Jacques on [email protected] or by phone: 0498 843 181.