Update: While these closures were temporary as a response to COVID-19 restrictions, Mosaic Brands has since flagged plans to close down 300-500 stores for good. Click here to learn more.
The company that owns iconic brands including Rockmans, Noni B, Millers and Rivers has decided to suspend all store operations starting tomorrow.
Mosaic Brands (ASX: MOZ) will shut almost 1,400 stores across its network because its personal service mandate conflicts with the government's social distancing recommendations.
"All team members affected by the store closures will be stood down with access to leave entitlements while the Group reviews government support schemes that may be available to them," the company said.
"The Group will continue to communicate regularly with the team and will offer other forms of support through this difficult time and period of uncertainty, including access to its Employee Assistance Program."
Mosaic, also known for such brands as Katies, Autograph, W.Lane, Crossroads and Beme, has seen a significant drop in store traffic and revenue.
"The Group is working with its business partners and is reviewing its cost of doing business, with a view to reducing costs to match expected revenue.
"These steps are being taken to ensure the Group is best placed for the coming months and to provide longer-term job security to its 6,800 predominantly female team.
"Mosaic's online operations will continue through this period and customers will be able to purchase from all the Group's nine brand websites."
MOZ shares were down 5 per cent at $0.285 at 1:45pm AEDT.
Updated at 1:48pm AEDT on 25 March 2020.
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