At least 23 Bangladeshi readymade garment (RMG) manufacturers are at risk of losing approximately US $ 30 million in payments following the impending permanent closure of all fashion chains operated by Mosaic Brands Limited, one of Australia’s largest retailers. The shutdown comes after the receivers of the financially troubled fashion group were unable to find buyers for its remaining chains, Millers and Noni B.
Mosaic Brands, which entered voluntary administration in October 2024, had previously announced the closure of brands such as Katies and Rivers, along with the winding down of others including Rockmans, Crossroads, Autograph, W Lane, and BeMe. The company owes creditors around US $ 249 million, exacerbating concerns among its suppliers.
According to reports, the closure of all Mosaic stores is expected to take place by mid-April this year, following an announcement from KPMG, the receiver managing the company’s financial affairs. Despite ongoing efforts, no buyers for any of the brands within the Mosaic portfolio have been found.
Bangladeshi RMG manufacturers are now facing potential defaults, putting thousands of jobs at risk. Among the affected companies, Big Boss Corporation is owed US $ 3.09 million, which includes US $ 1.63 million for shipped goods. Mohammad Mohan, deputy general manager at Big Boss, expressed concerns over the lack of communication from Mosaic since they entered voluntary administration. “We don’t know what will happen,” he stated, adding that communication has been limited to interactions through the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
NRN Knitting and Garments Limited is also facing substantial losses, with Mosaic Brands owing them about US $ 1.5 million. Kawsar, a director at NRN, noted that they currently have no direct contact with the Australian company, relying instead on the BGMEA for updates.
The BGMEA has been actively working to address the concerns of affected exporters, having contacted the Australian High Commission in Dhaka regarding the matter. However, the high commission clarified that the Australian government cannot intervene in private commercial disputes and advised affected parties to seek independent legal counsel.
The situation has raised alarm among Bangladeshi exporters, who have maintained long-standing relationships with Mosaic Brands. Many are now worried that the incident could tarnish the reputation of other Australian buyers. A former BGMEA director lamented the unexpected turn of events and emphasized the need for support from the Australian government and AUSTRADE.
The list of affected exporters includes Big Boss Corporation Limited, Active Composite Mills Limited, Savar Sweaters Limited, and several others, collectively facing significant financial uncertainty as the situation evolves.
