The company has faced significant structural challenges, including issues with suppliers and inventory management, which have contributed to its financial struggles.

Mosaic has struggled with profitability in recent years, a situation worsened by pandemic-related lockdowns and reduced consumer spending amid rising cost-of-living pressures.

Mosaic Brands, the parent company of well-known Australian clothing labels such as Rivers, Millers, and Katies, has entered voluntary administration, putting nearly 3,000 jobs at risk.

FTI Consulting has been appointed as voluntary administrators, while KPMG will serve as receivers to assist in the restructuring process.

The management team aims to use the administration process to streamline operations and concentrate on core brands for future success.

The decision to enter administration was made after recent attempts to restructure operations informally failed.

An annual report revealed substantial doubts about the company's ability to continue as a going concern, citing $39 million in debt and $45 million in lease liabilities.

Mosaic's shares have plummeted from 10 cents to just 3.6 cents over the past year, leading to a market capitalization of only $6.4 million.

Despite efforts by CEO Erica Berchtold and the board to renegotiate with suppliers and landlords, they were unable to secure the necessary support for their restructuring plan.

As part of its operational strategy, Mosaic plans to continue trading while focusing on the critical Christmas and holiday shopping period.

Mosaic intends to invest in its key brands, including Millers, Noni B, Rivers, and Katies, while also developing a standalone online marketplace.

The board has reassured customers and staff that despite current challenges, the business has a long-term future.