Ezibuy’s parent company has appointed administrators – and this time it includes other brands including Katies and Millers.
Mosaic Brands told the ASX it had received the support of a majority of its commercial partners and the board had been confident in a restructure process it had under way.
That included simplifying operations and reducing the number of shops, focusing on “key growth brands” and reducing costs.
Mosaic told the market that the process had involved talking to its lenders, suppliers, landlords and the Australian Competition and Consumer Commission (ACCC).
The ACCC has issued court proceedings relating to late or non-delivery of good during the pandemic.
But it said a small number of stakeholders did not support the proposal or negotiating a commercial outcome and Mosaic could not reach a commercially acceptable resolution with the ACCC.
It said the group would continue to trade and would focus on “brand rationalisation and wider restructuring”.
KPMG has been appointed receiver by a secured lender.
At the end of September, Mosaic said it was still finalising its latest annual results, which were taking longer than expected.
Last year, voluntary administrators were appointed to Ezibuy, which owed more than $100 million to creditors.
At the time, Mosaic said its significant decline in sales through 2022 was at odds with the rest of the business.
But Mosaic bought it back earlier this year, planning a simplified online-only operation.
Ezibuy was founded in New Zealand in the 1970s and was owned by simplified until it just before the pandemic.
In a post on Facebook, Ezibuy told followers that online orders would continue to be shipped and inquiries responded to.
Although some commenters expressed sadness, others said their recent experiences with Ezibuy had not been positive. Some complained about difficulty getting refunds and the loss of familiar Ezibuy brands.
Mosaic said the board wanted to reiterate its belied – “to those who supported the restructure, to Mosaic’s customers and most importantly Mosaic’s dedicated team across Australia” – that the business had a long-term future.
