At least 23 readymade garment manufacturers of Bangladesh are at risk of not receiving payment of about $30 million from Mosaic Brands Limited, one of Australia鈥檚 largest retailers, as all its fashion chains of Mosaic are to be shut down soon permanently.
Receivers of the collapsed fashion group failed to find a buyer for its two remaining chains, Millers and Noni B, leading to the shutdown.
Earlier, the receivers of the retailer brand announced that they had been unable to find a new owner for Mosaic鈥檚 chains Katies and Rivers. It also announced that other brands like Rockmans, Crossroads, Autograph, W Lane and BeMe would be wound down. Earlier in October 2024, Mosaic collapsed owing creditors $249 million.
RMG manufacturers of the country said that they now risk defaulting and thousands of workers鈥� jobs were at risk too.
In October, Mosaic Brands entered voluntary administration. Then FTI Consulting and KPMG became the receivers of the company and handled their financial issues.
The company operates more than 700 retail stores around Australia with nine subsidiary brands like Millers, Rockmans, Noni B, Rivers, Katies, Autograph, W Lane, Crossroads, and Beme.
However, in October, they shut five of their nine brands, namely Rockmans, Autograph, Crossroads, W Lane and Beme.
Within December, the receiver, KPMG, announced closure of Rivers and Katies as the receiver failed to find any buyer of the fashion chains.
Recently, on January 29, receivers and managers for the failed retailer from KPMG made an announcement that despite the best efforts of all parties, they had been unable to achieve sale of any of the brands within the Mosaic portfolio, according to a report from Sydney Morning Herald.聽
The receiver also stated that, as a result, all stores in the Mosaic Brands Group would be wound down over the coming months as it expected all stores to be closed by mid-April of this year.
However, the apparel exporters of Bangladesh said that they were yet to get any update or payment from Mosaic Brands.
The company owes Bangladeshi Big Boss Corporation $3.09 million, which includes $1.63 million for shipped goods and the remaining amount for goods prepared for them.
Talking to 抖阴精品, Mohammad Mohan, deputy general manager of Big Boss, said that they were yet to get any payment from the Australian brand.
鈥楢fter demanding voluntary administration, they stopped any direct communication with us. We don鈥檛 know what will be happen,鈥� he added saying that currently they were communicating through the Bangladesh Garment Manufacturers and Exporters Association.
Mosaic Brands owes about $1.5 million to NRN Knitting and Garments Limited, including $0.8 million for shipped products and $0.7 million for products prepared for them.
Kawsar, director of the company, said, 鈥榃e have no any one-to-one connection with the Australian company. However, the BGMEA is dealing with the matter.鈥�
Bangladeshi exporters have worked with Mosaic for years. They have sales contracts that require payments to be made within 120 days after they submit the bill of lading.
Upon the continuous reporting from exporters, the BGMEA contacted the Australian High Commission in Dhaka twice to address the issue in September.
However, the high commission said that the Australian government had no role in advising or making representations regarding private commercial disputes and suggested that it would be in the best interest of the affected BGMEA members to seek their own independent legal advice and prosecute the merits of their cases in Australia or Bangladesh.
Talking to New age, former BGMEA director, Mohiuddin Rubel, said that the incident from an Australian buyer was totally unexpected.
鈥榃e are always optimistic about our new markets like Australia, but such feedback from a new market may disappoint our manufacturers. It also may spoil the reputations of the other buyers of Australia,鈥� he added saying that the Australian government and AUSTRADE would have played role in this regard.
The affected exporters are Big Boss Corporation Limited, Active Composite Mills Limited, Savar Sweaters Limited, Padma Satel Arab Fashion Limited, Sultana Sweaters Limited, Oasis Fashion Limited, FNF Trend Fashion Limited, Fabrica Knit Composite Limited, NRN Knitting & Garments Limited, Smug Sweaters Limited, Fine Sweaters Limited, Bhuyan Warmtex Pvt Limited, Fyne Sweaters Limited, Hera Sweaters Limited, Hydroxide Knitwear Limited, Mega Denim Limited, Men鈥檚 Fashion Limited, Asrotex Group, Reaz Knitwears Limited, Impress Newtex Composite Textiles Limited, Pretty Sweaters Limited, Raiyan Knit Composite Limited and AST Knitwear Limited.
