Unpaid and Uncertain: Workers Stranded by Fashion Empire’s Collapse Await Answers

Retail employees from the women’s clothing conglomerate Mosaic Brands find themselves in limbo as they await overdue payments following the company’s demise. Despite the collapse of popular brands like Katies, Rivers, Autograph, and others under Mosaic Brands, workers have been left in the dark about when they will receive their entitled compensation.

Since the parent company went into administration owing a substantial $250 million to creditors globally in October 2024, employees have been grappling with uncertainties surrounding their unpaid annual leave and redundancy pay. With attempts to sell off some brands unsuccessful, resulting in store closures nationwide, the situation remains dire for those left jobless by the closures.

One such instance is Autograph Griffith in the Riverina region, which ceased operations in October 2024, leaving former employees, including long-term staff, in financial distress. Sharon Brown, a 15-year veteran at the store, expressed her frustration over the lack of clarity regarding payment timelines. The uncertainty surrounding the issue has led many, like Brown, to resign themselves to a waiting game, hoping for a resolution.

Despite repeated inquiries, the receivers of Mosaic Brands have failed to provide a concrete timeframe for settling the outstanding payments owed to the affected employees. As the process of closing down stores progresses, thousands of predominantly female workers face an uncertain future in a diminishing retail landscape, exacerbating financial strain and job insecurity.

Former Autograph Griffith manager Liz Purtell highlighted the financial burden this situation places on workers who rely on these payments after losing their jobs. Purtell, along with other affected employees, sought assistance from the Shop, Distributive and Allied Employees Association (SDA) to navigate the challenging circumstances and secure their entitled compensations swiftly.

The SDA has been actively advocating for the prompt disbursement of owed entitlements, engaging with authorities and monitoring the evolving situation closely. Despite the complexities involved, the union remains committed to supporting affected members and exploring avenues for potential future employment opportunities.

In the absence of a clear resolution from the company, employees are advised to maintain detailed records of their employment terms and financial entitlements. Should the administrators fail to recover adequate funds for payouts, affected workers may resort to the Fair Entitlement Guarantee (FEG), a government-backed scheme offering financial aid to individuals affected by insolvent businesses.

While the road ahead remains uncertain for these workers, concerted efforts are underway to ensure that their rights are upheld, and they receive the compensation they are owed for their dedicated service to the now-defunct fashion empire. As the saga unfolds, the plight of these workers underscores the challenges faced by individuals caught in the aftermath of corporate collapses, emphasizing the critical need for timely and equitable resolutions in such circumstances.