Workers Await Payment After Women’s Fashion Empire Collapse

Workers left unemployed by the collapse of a prominent women’s clothing empire are facing uncertainty as they await payment for their services. The fashion conglomerate, Mosaic Brands, which oversaw popular retail outlets like Katies, Rivers, Autograph, Rockmans, Crossroads, W.Lane, BeMe, Millers, and Noni B, fell into administration with debts totaling $250 million globally in October 2024.

Efforts to sell some of the brands were unsuccessful, leading to the closure or impending closure of stores across Australia, leaving many employees without their entitled payments. One such store, Autograph Griffith in the Riverina region, ceased operations in October 2024. Despite this, former employees, including long-term staff owed significant sums in annual leave and redundancy pay, are yet to receive any compensation.

The situation has left workers like Sharon Brown, who dedicated 15 years to the store, frustrated and anxious about the uncertainty surrounding their overdue payments. The lack of a clear timeline for when they will be remunerated has added to the distress of those affected. The receivers of Mosaic Brands have been unable to provide a definitive date for the settlement of outstanding employee entitlements, prolonging the financial strain on the workforce.

The closure of these retail outlets has predominantly impacted female employees, many of whom face limited job prospects in an already struggling retail sector. Liz Purtell, a former manager at Autograph Griffith, expressed empathy for her colleagues and highlighted the significance of the delayed payments, especially during a period of sudden unemployment.

In response to the crisis, the Shop, Distributive and Allied Employees Association (SDA) has been actively advocating for the affected workers. SDA National Secretary Gerard Dwyer emphasized the union’s commitment to securing the owed entitlements promptly, acknowledging the complexities involved in such cases. The union has been offering support to members, exploring avenues for expedited payments and potential future employment opportunities.

While there is hope that the employees will eventually receive their dues in full, the uncertainty surrounding the timeline remains a pressing concern. The potential fallback option of the Fair Entitlement Guarantee (FEG), a government initiative to assist workers impacted by company insolvencies, may come into play if adequate funds are not recovered through the administration process.

As the affected employees navigate this challenging period of financial insecurity, the need for transparency, support, and timely resolution of their outstanding payments is paramount. The unresolved situation underscores the vulnerabilities faced by workers in the fashion industry and the importance of safeguarding their rights and financial well-being in times of corporate upheaval.