Retailers' Collapse Under Scrutiny: Former Chairman Faces Asset Probe

Liquidators are pursuing former executives of Mosaic Brands, the company behind Australian retail chains Millers, Katies, and Noni B, following its collapse under a significant debt load. The investigation centers on the circumstances leading to the company's demise, which resulted in the loss of approximately 3,000 jobs.

Central to the probe is former chairman Richard Facioni, who has been subject to a worldwide asset disclosure order. Facioni, along with seven other senior figures, was compelled to reveal their global assets as part of the ongoing investigation into the company's financial downfall. The group included the former Chief Executive of Mosaic Brands, Erica Berchtold, who now leads David Jones.

Facioni was scheduled for public examination in the Federal Court on Monday. This examination is part of a prolonged inquiry into the collapse of Mosaic Brands, a company that previously operated around 700 stores. In 2024, the apparel company collapsed with a reported $249 million in debt.

On Wednesday, Mosaic Brands' former non-executive director Sue Morphet participated in a public examination. The proceedings aim to uncover the reasons behind the significant retail failure that impacted multiple well-known brands and led to widespread job losses.