It is expecting to report a deeper loss for the 2024 financial year in the range of between $15 million and $20 million, partially driven by disruptions from a botched technology migration project involving a new logistical supply chain platform.
This impacted Mother’s Day trading to a degree that was “greater than expected”, delaying the delivery of stock to stores in the lead-up to Mother’s Day. “This, combined with softness in consumer spending, severely impacted revenue and earnings in the fourth quarter,” Mosaic said in a statement from June 21.
Mosaic has close to 100 suppliers. A handful of them in Australia and China have complained about not being paid by the clothing group.
One of those suppliers was Faith Fashion, which went into liquidation in 2022. Darren Vardy, of Insolvency Options, which prepared the liquidator’s report, found that Mosaic owed Faith Fashion almost $197,000. In May 2022, he asked that the bill be paid but so far, it hasn’t.
Vardy’s report noted that Mosaic became Faith Fashion’s sole customer after 2019. Mosaic would place orders with Faith Fashion to have clothing manufactured in India, China and Bangladesh.
Vardy said after some investigation into Faith Fashion’s trading…
