Popular fashion retailer Katies is to close dozens of stores as its parent company, Mosaic Brands Group, makes more cuts to “consolidate” its business.
The Katies brand will cease to exist when all 80 stores in Australia close in mid-January.
A further 80 Millers, Rivers and Noni B stores will also close permanently around the same time.
The mass store closures will mean that around 480 employees across all Mosaic Brands chains will be out of work in the new year. 7 news reported.
Employees and owners of affected stores will be notified as soon as possible.
KPMG, which has been working with administrators FTI Consulting since Mosaic Brands went into administration in October, said the decision was made following a review of the business.
“The trustees and managers would like to thank all employees, particularly those whose tenure is coming to an end, for their commitment and support during the receivership process,” KPMG said in a statement.
All 80 Katies stores in Australia will close in mid-January
The decision to close all Katies stores comes weeks after parent company Mosaic Brands went into voluntary administration.
The once-thriving Mosiac Brands operated around 700 stores across Australia and has 2,700 employees.
But the company reportedly owed creditors $249 million when it went into voluntary administration in October.
Shortly before the announcement, Mosiac Brands closed all Rockmans, Autograph, W. Lane, Crossroads and BeMe stores.
Some 231 stores were affected.
Mosaic CEO Erica Berchtold said at the time that the closures were aimed at “streamlining its brand portfolio” and simplifying the business, allowing it to focus on “core growth brands” Millers, Noni B, Rivers, Katies and your Mosiac online marketplace.
There will be a smaller presence of Noni B stores across the country, as well as Rivers and Millers stores (pictured, a Noni B store)
The first Katies store opened 70 years ago in 1954 in Adelaide’s Rundle Mall and two years later launched a brand of affordable, fashionable clothing for Australian women.
The latest development announced Tuesday means Millers, Rivers and Noni B will operate with a smaller physical presence.
“The decision to undertake the store consolidation program has not been taken lightly,” KPMG said.
“Since the date of appointment, the directors and administrators have stabilized operations, continuing to market the group’s businesses while working with suppliers to release stock for the crucial Black Friday and Christmas trading periods.”
Despite the store closures, KPMG said this would not affect Mosaic Brands Group’s sales.
Interested parties have until the end of December to submit binding offers.
Daily Mail Australia has contacted KPMG for further comment.