Katies stores across Australia ended 68 years in operation in Australia in January. Photo: Facebook.
Former employees of collapsed fashion empire Mosaic Brands, who have been waiting up to five months for entitlements owed, can now apply for them online, though payments could still be 14-16 weeks away.
Mosaic Brands went into voluntary administration in October 2024, meaning its Autograph, Katies, Rivers, Rockmans, Crossroads, W.Lane, BeMe, Millers and Noni B stores Australia-wide have closed or will be shut by next month.
Region has reported on frustrated employees of a Riverina Autograph store (in Griffith) who had been waiting to be paid their annual leave, long-service and redundancy entitlements.
Given administrators have uncovered a $249 million debt by Mosaic Brands, there were fears former employees could miss out on entitlements altogether.
However, in February 2025, the Federal Government announced it would intervene to ensure the (mostly female) 2800 former staff would be paid.
Employment and Workplace Relations Minister Murray Watt said the government would make payments under the Fair Entitlement Guarantee (FEG), a taxpayer-funded 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.
Former Mosaic Brands employees say they’ve been told payments could be 14-16 weeks away, but they’re able to start the process by applying online through a website run by the Department of Employment and Workplace Relations (DEWR), which administers the FEG.
In its 2023 annual report, Mosaic Brands cited a 97 per cent female representation among its staff, with an average age of 48. Many have limited alternative employment prospects, given the overall decline in the number of physical clothing stores across the country.
Mosaic Brands is now in the hands of two administrators. KPMG is running the day-to-day operations of the company and FTI Consulting is trying to sell business assets to recoup money for unpaid employees and other creditors.
Region asked FTI Consulting when the employees would be paid and it advised us to ask KPMG. When we asked KPMG, it advised us to ask DEWR, which did not answer our question directly but provided the following statement: “While FEG is generally only available after an employer is placed into liquidation, the early access declaration enables former employees of Mosaic Brands Group to apply for FEG assistance while the group is in voluntary administration,” a spokesperson said.
“Former Mosaic Brands employees can apply for FEG assistance by lodging an FEG claim form with the department. More information about how to apply for FEG assistance can be found on the department’s website.
“Eligible Mosaic Brands employees can claim up to 13 weeks of unpaid wages, unpaid annual leave and long-service leave, payment in lieu of notice [up to five weeks], and redundancy pay [up to four weeks per full year of service].
“The department is working with the receivers to enable FEG claims to be processed as swiftly as possible.”
The Shop, Distributive and Allied Employees’ Association (SDA), which represents some former Mosaic Brands staff, said it continued to help the workers.
“The SDA is leaving no stone unturned to make sure Mosaic workers get their full legal entitlements as quickly as possible,” a spokesperson said.
“The union is in regular contact with the liquidator to press for speedy resolution of all outstanding matters.”
If you know more about this story, email Oliver Jacques on [email protected] or call 0498 843 181.
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