Online retailer EziBuy has become the latest brand to collapse and go into administration after sales figures plummeted.
The fashion and homeware multichannel retailer suffered a 51 per cent decline in sales in the first half of 2022-23 financial year, figures which were at odds with the strong and continued online growth of its owners’ other brands.
Mosaic Brands had seen a 23 per cent growth in online sales revenue in the same period, which are up 68 per cent since the Covid-19 pandemic started three years ago in 2020.
The fashion retail giant has appointed Katherine Barnet and Damien Hodgkinson from Olvera Advisers as administrators.
Online fashion and homeware multichannel retailer EziBuy is the latest popular retailer to go into administration
‘The extent of EziBuy’s sales decline, particularly in the context of the group’s wider positive portfolio of online performance, prompted the board to conduct a strategic review of its operating and cost structure,’ Mosaic the company told investors in a market update on Monday.
‘Having considered the results of that review, the board determined that it was in the group’s best interests as a whole that the EziBuy business be restructured.
‘Mosaic intends to propose a restructure to the administrator that would see EziBuy emerge as a simplified, profitable, cash-generative online-only operation, and one that is more strongly aligned with the group’s successful digital strategies across its other brands,’
‘This process to restructure EziBuy is in the best interests of the group’s shareholders as it will improve the Group’s overall net asset position and operating cashflow.’
Mosaic added the announcement has no impact on any other of the nine retail brands within the group’s portfolio, including Millers, Rockmans, Noni B, Rivers, Katies, Autograph, Crossroads and Beme.
EziBuy is currently spruiking a ‘early Easter surprise’ sale on full-priced women’s clothing
‘Today’s announcement has no impact on any other of the nine retails brands within the group’s portfolio,’ the company added.
‘The brands continue to benefit from the strong return to instore shopping post covid and have delivered +18 per cent comparable in-store sales growth for the January to March period against the prior year.’
Established in 1978 as a mail order business by brothers Peter and Gerard Gillespie in Palmerston North, New Zealand, EziBuy describes itself on its website as a leader in the apparel and homeware catalogue market.
More than 23 million catalogues are mailed annually, attracting more than 1.75 million orders a year across Australia and New Zealand.
The brand has no physical in-store presence in Australia but has six retail stores and a major distribution centre in New Zealand
EziBuy is currently spruiking a 50 per cent ‘early Easter surprise’ sale on selected full-priced women’s clothing on its website.
It comes less than two years after EziBuy announced a restructure after posting a $28.9 million loss for the 2020-21 financial year.
EziBuy was the largest fashion and homeware multi-channel retailer in Australasia when it was acquired by Woolworths in 2013.
EziBuy suffered a 51 per cent decline in sales in the first half of 2022-23 financial year
The demise of EziBuy follows the the collapse of other well-known retailers in recent months. Pictured are shoppers at Melbourne’s Chadstone Shopping Centre during the Black Friday sales
Mosaic Brands (formerly Noni B Limited) took hold of EziBuy after its major shareholder, Sydney-based investment firm Alceon acquired the business from Woolworths in 2017.
Alceon had big plans to develop EziBuy into an online department store at the time.
But it later realised EziBuy didn’t have the expertise for the proposed venture and sold a 50.1 per cent sale of the brand to Mosaic Brands two years later in 2019.
Mosaic Brands announced at the time the move would increase online sales to $200 million, representing 20 per cent of its total revenue and give access to a database of more than two million new customers.
Company chief executive Scott Evans described EziBuy at the time as a low-risk opportunity to fast-track the company’s digital strategy.
Mosaic Brands is Australia’s largest specialty fashion retailer group featuring Millers, Rockmans, Noni B, Rivers, Katies, Autograph, W. Lane, Crossroads and Beme with more than 1,100 stores nationwide.
The Mosaic Brands board decided it was in the group’s best interests that the EziBuy business be restructured
