Katies to shut down and almost 500 workers to lose their jobs as Australian fashion empire Mosaic Brands collapses

Popular fashion retailer Katies will close dozens of stores because parent company Mozaïek Brands Group is making further cuts to ‘consolidate’ its activities.

The Katies brand will cease to exist when all 80 stores in Australia close by mid-January.

A further 80 Millers, Rivers and Noni B stores will close permanently around the same time.

Due to the massive closure of stores, approximately 480 employees of all Mozaïek Brands chains will be unemployed in the new year. 7 News reported.

Employees and landlords of affected stores will be informed as soon as possible.

KPMG, which has been working with administrators FTI Consulting since Mosaic Brands entered administration in October, said the decision followed a review of the business.

“The trustees and managers would like to thank all employees, especially those whose terms are coming to an end, for their commitment and support throughout the trusteeship process,” a statement from KPMG said.

All 80 Katies stores across Australia will close by mid-January

The decision to close all Katies stores comes weeks after parent company Mozaïek Brands went into voluntary administration

The decision to close all Katies stores comes weeks after parent company Mozaïek Brands went into voluntary administration

The once thriving Mosiac Brands operated approximately 700 stores across Australia and has 2700 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.

About 231 stores were affected.

Mosaic CEO Erica Berchtold said at the time that the closures were intended to “rationalize its brand portfolio” and simplify the business, allowing it to focus on “core growth brands” Millers, Noni B, Rivers, Katies and its online Mosiac brand marketplace.

There will be a smaller footprint of Noni B stores across the country, as well as Rivers and Millers stores (pictured a Noni B store)

There will be a smaller footprint 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 and fashionable clothing for Australian women.

The latest development announced on Tuesday means Millers, Rivers and Noni B will operate with a smaller physical presence.

“The decision to implement the store consolidation program was not taken lightly,” KPMG said.

‘Since the date of appointment, the administrators and managers have stabilized operations, continuing to trade the group’s businesses while engaging with suppliers to release stock for the crucial Black Friday and Christmas trading periods.’

Despite the store closures, KPMG said this would not impact sales of Mozaïek Brands Group.

Interested parties have until the end of December to submit binding bids.

Daily Mail Australia contacted KPMG for further comment.