The popular store Katies ended its 68 years in operation in January. Photo: Facebook.
The Federal Government has announced that it will intervene to pay 2800 workers who have been left out of pocket by the collapse of women’s clothing empire Mosaic Brands.
On Thursday (27 February), Region reported on frustrated employees of a Riverina Autograph store (in Griffith) who had been waiting for more than four months for thousands of dollars’ worth of unpaid entitlements – including annual leave, long service leave and redundancy pay.
Their longtime place of work suddenly closed when the parent company of Autograph, Katies, Rivers, Rockmans, Crossroads, W.Lane, BeMe, Millers and Noni B went into administration in October 2024.
Administrators had been selling assets of these companies to raise funds to pay employees, but told Region they did not know if and when payments would be made, saying only they were “cautiously optimistic” that workers would eventually receive their entitlements.
However, on Friday (28 February), Employment and Workplace Relations Minister Murray Watt said the government would pay the workers directly so they didn’t have to wait for the administration process to play out.
Payments are to be made under the Fair Entitlement Guarantee (FEG), a taxpayer-funded federal government safety net scheme that provides financial assistance to those who have lost their jobs through company bankruptcy and are not paid what they are owed.
“FEG is usually activated once a business has gone into liquidation, but the Albanese Government recognises that this has been quite a stressful, drawn-out process for a group of workers who depend very heavily on their pay coming in,” Minister Watt said.
“Around Australia about 320 stores are still operating – progressively closing down as they run out of stock and employees are then let go.
“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.”
Liz Purtell worked for Autograph and its predecessor Millers since 1997. Photo: Oliver Jacques.
Under the FEG, former employees can lodge a claim online to receive up to 13 weeks of unpaid wages as well as unpaid annual leave, long service leave and redundancy pay.
“Albo must have heard us whinging,” said Liz Purtell, who worked at Autograph Griffith for 27 years.
“I’m not sure how it works but I hope this means we will finally get paid. My union (the Shop, Distributive and Allied Employees Association) said they would get in touch with me to help with the process of claiming what I’m owed through the FEG.”
Another former Mosaic Brands employee said she suspected the timing of the upcoming federal election may have influenced the government’s decision to intervene, but was grateful nevertheless.
A total of 666 clothing stores Australia-wide have either closed or will shut by April 2025.
An administrator’s report to creditors published last week reveals Mosaic Brands owes $318 million to creditors worldwide. Former employees like Ms Purtell are owed $22 million and considered “priority creditors” that were first in line to be paid. If administrators eventually do recoup enough funds to pay back former employees, these funds will go back to the Federal Government (who have already paid the workers through the FEG).
Most creditors are unlikely to receive any funds owed at all.
Former Mosaic Brands employees owed money can make a claim to be paid through FEG online. If you know more about this story, contact [email protected] or phone 0498 843 181.
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