Retail giant behind Rivers, Noni B and Katies to shut 250 stores

The major Australian retailer behind well-known fashion brands including Noni B, Katies and Rivers will close 250 stores amid ongoing rental disputes and challenging retail conditions throughout the coronavirus pandemic.

Mosaic Brands, which also owns Millers and Rockmans, announced at its annual general meeting on Thursday that it would close hundreds more stores by the end of June, after already shutting 73 outlets throughout COVID-19.

The company has been embroiled in public battles with landlords over rental expectations in the unprecedented retail environment that has presented throughout the pandemic, threatening to shut 500 of its 1300 stores earlier this year if it could not strike agreeable rental deals.

In August, Westfield shopping centre owner Scentre locked Mosaic Brands out of 129 stores over their refusal to pay rent, with hostilities continuing in the ensuing weeks.

In an update to investors at the company’s AGM, Mosaic Brands managing director Scott Evans said that with the brand not able to reach amicable agreements with its landlords and online shopping making up an increasing percentage of its sales, it was time to withdraw from many stores.

“Consistent with our comments at the 2020 full-year results announcement, since August we have closed 73 stores in response to unrealistic rental requests and a permanent shift towards online purchases,” Evans said.

“We will not maintain lease agreements that don’t match the needs of our customers and … we have already closed 73 stores over the past three months and expect further closures of up to 250 stores by the end of this financial year.”

Mosaic has not yet confirmed which stores and locations will close, but said the company would continue to support affected staff.

“We are very conscious of the impact this has on our people, along with the communities they serve,” Evans said.

“We are providing support to all impacted team members as well as offering redeployment opportunities where possible.”

Mosaic Brands chairman Richard Facioni said that retail customers had gone “into hibernation” but that he expected them to return as restrictions lift.

“With most restrictions lockdowns now lifted we are confident those customers will stir from that hibernation and resume visiting our loyalty brands.”

“Exactly when they will have the confidence to return in-store is still unknown.”