Online clothing retailer EziBuy enters administration

ASX-listed Mosaic Brands announced its online retailer EziBuy would enter administration after suffering a large drop in sales.

The company acquired EziBuy before the pandemic and it was profitable in 2021 and 2022 while lockdowns caused many people to shop online.

But in the first half of 2023, the company reported a 51 per cent drop in sales.

In light of the losses, the company decided to put EziBuy into administration and restructure the online retailer to improve its cash flow.

Katherine Barnet and Damien Hodgkinson have been appointed as administrators.

“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,” Mosaic said in a statement to the ASX.

“The board believes 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.”

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Mosaic Brands also owns other women’s fashion retailers including Rockmans, Noni B, Katies, Crossroads, W Lane and Autograph.

The company, excluding EziBuy, has boasted a 68 per cent increase in online sales after the pandemic.

There has also been an 18 per cent increase in in-store sales for the company’s retail brands.

EziBuy offers its own range of clothing, homewares and furniture but also stocks some of its parent company’s brands.

It has no physical stores in Australia but has four in New Zealand.

A plethora of fashion and homewares retailers have collapsed in recent months.