Another major retail group has threatened widespread closures around Australia, as a result of the economic impacts of coronavirus.
‘Mosaic Brands’, which owns Rivers, Noni B, Katies and Millers has unveiled plans to shut up 500 stores over the next two years, as various leases come to an end.
It comes as the company reports a $170 million net loss for the last financial year.
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CEO Scott Evans says performance was good ahead of the crisis.
“First by the devastating bushfires which directly impacted 20 per cent of our store portfolio over the Christmas period, then by COVID-19 which saw us close all 1,333 stores for 9 and a half weeks including the peak Mothers’ Day trading period,” he said.
While the coronavirus impacts on the economy are largely to blame for the closures, the company has also sited an ongoing dispute with one of their landlords.
It’s understood the threat to shut over a third of its stores comes after a number of shops were forced to close within Westfield Shopping Centres around the country.