Exclusive report on controversial Chinese security cameras installed in NZ, PM Hipkins triggers lobbying shake-up and the iconic Kiwi fashion retailer in administration in the latest New Zealand Herald headlines. Video / NZ Herald
An online clothing retailer attached to an ASX-listed shopping giant has gone into administration.
Earlier on Monday, e-commerce brand EziBuy, which has four stores in New Zealand, fell apart.
EziBuy was a subsidiary of Mosaic Brands, which in a market update warned that the outfit had been placed into thecare of administrators. Mosaic Brands sells nine prominent women’s clothes lines including Millers, Rockmans and Rivers but said the performance of EziBuy was “at odds” with the rest of its operations.
For instance, the fashion conglomerate has enjoyed a 23 per cent uplift in revenue for its online sales arm, and is up a total of 68 per cent since the Covid-19 pandemic started.
In contrast, EziBuy has suffered a 51 per cent decline in sales from June to December last year.
“The board determined that it was in the group’s best interests as a whole that the EziBuy business be restructured,” Mosaic said in a statement shared with the ASX.
Mosaic brought EziBuy into the fold right before the pandemic.
The company is still operating business as usual, with plans to restructure it under the guidance of Kate Barnet and Damien Hodgkinson of insolvency firm Olvera Advisors.
EziBuy will change to become a “simplified, profitable, cash-generative online-only operation”, the Mosaic group hopes.
The digital strategies of some of Mosaic’s other brands will be adopted for the struggling company.
Mosaic Brands remains strong, they emphasised, with an 18 per cent increase post-Covid from physical store sales on top of its growing online sales.
EziBuy is one of many to be added to a growing list of retailers struggling to turn a profit in a post-Covid world.
Last week, iconic music and entertainment retailer Sanity shut down all 50 of its stores across Australia as the pandemic took a toll on the business, but continues operate in a digital space.
In February, Australian prestige clothes firm Alice McCall went into liquidation. News.com.au reported on Friday that the company owes A$1 million ($1.07m) to creditors.
EziBuy has suffered a 51 per cent decline since the pandemic eased up. Photo / Supplied
Then in January, furniture seller Brosa fell into liquidation after its restructuring attempt failed, leaving behind debts of A$24m, including A$10m to customers from unfulfilled orders.
In July last year, trendy sunglasses business Soda Shades also went into administration owing A$2.3m, and just a week before, sneaker company Sneakerboy also folded with A$17.2m owed to more than 100 creditors.
Online fashion giant Missguided also had no choice but to call in administrators after failing to secure a rescue bid, with big-name brands like The Iconic and Myer selling its wares before its collapse.
