ASX-listed clothing retailer Mosaic Brands is expected to be...

ASX-listed clothing retailer Mosaic Brands is expected to be placed in voluntary administration as early as Monday, multiple sources said.

Shares in Mosaic, whose brands include Katies, Millers, Noni B and Autograph, last traded at 4¢, giving the company a market value of $6.3 million. Vaughan Strawbridge, of FTI Consulting, will oversee the administration, those sources told this column.

KPMG has been appointed by the lenders as Mosaic’s recievers.

Mosaic Brands owns Rivers, Katies, and Noni B.

As Street Talk reported on August 6, Mosaic had entered so-called “safe harbour” as its directors sought to trade through a difficult period for the business.

Safe harbour laws give directors of Australian companies protection from personal liability for debts incurred by an insolvent company, provided they are taking actions that could restructure the group and lead to a better outcome for creditors.

Advertisement

The voluntary administration follows a tumultuous period for Mosaic Brands, which experienced severe disruptions as it migrated to a fully integrated logistical supply chain and distribution system.

Mosaic uses about 100 suppliers for its various brands, but two large Chinese suppliers have alleged on social media that they had not been paid for products already delivered to Mosaic.

The business also suffered a slew of departures including Mosaic’s long-serving chief financial officer, Luke Softa. Erica Berchtold, the former chief executive of online retailer The Iconic, took over the top job at Mosaic from Scott Evans in April.

Its major shareholders include chairman Richard Facioni; investment company Alceon Group, which holds a 19.4 per cent stake and has representatives on the board; and Australian retailer Spotlight Group – owner of 19.7 per cent.