Workers who were employed by the women’s clothing empire Mosaic Brands found themselves in a dire situation after the company’s collapse left them unemployed and without their entitled payments. The parent company, which owned popular outlets like Katies, Rivers, Autograph, and others, went into administration owing a substantial $250 million to creditors globally in October 2024.
Efforts were made to sell some of the brands to another company, but unfortunately, this did not materialize. Consequently, stores across Australia either closed their doors or are set to wind up operations by mid-April. Autograph Griffith in the Riverina was one such casualty, with employees still waiting for their annual leave entitlements and redundancy pay months after the shutdown in October.
Sharon Brown, a former employee at Autograph Griffith for 15 years, expressed her frustration at the lack of clarity regarding when they would receive their owed payments. The uncertainty has taken a toll on the affected workers, with many facing financial strain due to the delayed settlements.
The receivers of Mosaic Brands indicated that while they are cautiously optimistic about employees being paid in full, the exact timeline for these payments remains unknown. The process of selling off remaining assets, including brands and intellectual property, is ongoing, with all stores expected to be closed by mid-April 2025.
Thousands of predominantly female employees have been or will be left jobless, adding to the challenges faced by women in an already struggling retail sector. Liz Purtell, a former manager at Autograph Griffith, highlighted the importance of the owed payments for many who have lost their jobs and are in dire need of financial support.
The Shop, Distributive and Allied Employees Association (SDA) has been actively advocating for the affected workers, pressing for early payment of entitlements and exploring avenues for future employment opportunities. The union has been in constant communication with members to provide support and updates on the situation.
Employees who have lost their jobs at Mosaic Brands are advised to keep detailed records of their employment, entitlements, and payslips. In the event that administrators are unable to recover sufficient funds for payments, workers may have recourse to the Fair Entitlement Guarantee (FEG), a government scheme that assists individuals affected by company insolvency.
The plight of these workers underscores the challenges faced by retail employees in an industry grappling with economic uncertainties and structural changes. As former employees continue to wait for their dues, the broader implications of such collapses on workers and the economy come into sharp focus.