Liz Purtell worked for Autograph for 27 years and feels she’s been treated badly by the company. Photo: Oliver Jacques.
Collapsed women’s clothing company Mosaic Brands owes creditors $250 million worldwide, with many Australian staff members still not paid their entitlements weeks after store closures.
In early October, Mosaic announced it would be winding up five of its brands – Autograph, Rockmans, Crossroads, W.Lane and BeMe – which meant it planned to close 200 stores nationwide.
At the time, Mosaic said it hoped to retain its other labels – Millers, Noni B, Rivers and Katies – but the company has since gone into voluntary administration, a process in which external consultants are called in to manage finances and try and save or sell the business. Since then, most Mosaic retail stores have remained open while some have gradually closed.
In Canberra, Autograph has stores in Tuggeranong, Belconnen and Queanbeyan and W.Lane has a shop in Tuggeranong. All remain open as at early December 2024, with no formal announcement on when they might close.
In the Riverina town of Griffith, however, Autograph closed its doors on 26 October. Some five weeks later, employees of this store are still owed thousands of dollars.
Liz Purtell, the Griffith Autograph manager who worked for the company for 27 years, says she feels abandoned.
“They initially told us we’d close after Christmas, but two days later they rang me and told me 26 October would be our last day… I stayed two more days to help clean up. There was no thank you after 27 years of service,” she said.
“I put so much into the job over so many years. I went down to part-time three years ago, but I still worked the same hours, often unpaid, because I was so loyal to my customers.
“The company still owes me my annual leave, long service leave and severance pay, worth thousands of dollars. I’m trying to find out if and when I’ll get paid but it’s hard to get answers. It’s not just me owed money, it’s all staff.”
The space occupied by Autograph will be taken by video games outlet EB Games and possibly a gym. Photo: Oliver Jacques.
Sharon Brown, who worked for Autograph for 15 years, said she was also owed her entitlements.
“I don’t really know what’s happening; we are trying to find out more,” Ms Brown said.
Liz Purtell and assistant Roz Ammendolia working in the store in the early 2000s. Photo: Supplied.
Region has confirmed there are several other former Mosaic Brand employees across Australia also owed entitlements.
The company is now in the hands of two administrators. KPMG is running the day-to-day operations of the company and FTI Consulting is trying to sell business assets to recoup money for unpaid employees and other creditors.
Administrators have indicated to Region that employees will have priority over others who are owed money and that, at this stage, it looks as though there’ll be enough funds recovered to pay employment entitlements in full.
However, there are no guarantees and the timing of when they might be paid is not known.
The company owes $249 million in total, including just over $20 million to 23 Bangladesh garment exporters.
FTI Consulting is trying to sell the business and a decision on the future of Mosaic Brands will be made in early 2025, at which time former employees will receive further updates.
If administrators do not recover enough funds to repay employees, the workers may have the option of being paid through the Fair Entitlement Guarantee (FEG), a federal government scheme that provides financial assistance to those who have lost their jobs through company bankruptcy.
Employees are only eligible for the FEG if Mosaic Brands goes into liquidation and is forced to close all stores and stop trading. This has not occurred.
“It’s all so confusing; I’ve asked my union to help me,” Ms Purtell said.
Liz Purtell is now doing charity work to raise money for the Griffith Hospital. Photo: Oliver Jacques.
The 72-year-old former Autograph store manager is a member of the Shop Distributive and Allied Employees Association (SDA), which represents retail workers.
“We’re confident that we will get our members paid their entitlements,” SDA NSW secretary Bernie Smith said.
“We have both union representatives and engaged experts in the field who are representing our members during the administration process and in creditor meetings.
“We advise all our members to keep copies of all their employment records and payslips. This is a very stressful time for our members; they can call our offices if they’d like any information or support.”
Mr Smith said the FEG would not cover any unpaid superannuation entitlements.
Region also asked the Fair Work Ombudsman (FWO), a federal government regulator created to help employees with workplace issues, if it could assist former Mosaic Brands employees owed money. FWO advised us to contact the liquidator, but provided a general statement.
“Any workers with concerns about their pay or entitlements can contact the Fair Work Ombudsman directly. Workers seeking advice or assistance can visit www.fairwork.gov.au or call the Fair Work Infoline on 13 13 94. An interpreter service is available by calling 13 14 50,” a spokesperson said.
If you know more about this issue, contact ojacques@region.com.au
Original Article published by Oliver Jacques on Region Riverina.
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