The fast fashion giant behind Millers, Rivers and Katies has left factories in Bangladesh scrambling for reportedly more than $30 million in unpaid invoices — and the fallout threatens the livelihoods of thousands of women.
The Australian fashion group Mosaic Brands reportedly owes 23 Bangladesh i apparel suppliers more than $30 million.Australian fashion retail group Mosaic Brands has entered into voluntary administration while reportedly owing around $30 million in payments to 23 suppliers in Bangladesh .Administrators are deciding if the company can be restructured or shut down, and workers and suppliers are waiting to see if they will get paid.
Mosaic, the parent company of Rockmans and Crossroads, said it would shutter an unspecified number of stores and lay off staff.Mosaic said it filed for administration the following month as "a necessary process to reset" the business and ensure its ongoing success. For unsecured creditors such as overseas suppliers, the process is uncertain, with payments depending on their place in the hierarchy of claims and the terms of the final restructuring plan.
"These workers are already paid poverty wages at around $6 per day for the minimum wage," said Sarah Rogan, Oxfam's advocacy lead.The manager of Mosaic supplier Sultana Sweaters, Sarwar Hossain, said banks were now hesitant to extend loans to struggling factories. Mr Hossain said Mosaic's debts began to pile up last year but he kept making shipments to fulfil the purchase orders.Supplied: Saqlain Rizve"We thought if Mosaic is still placing orders then we have to keep the relationship alive," he said."Because we were one of the largest manufacturers, we could not entertain unethical practices and had to protect our reputation," said Mr Hossain.Photo shows A Cambodian woman holds a sign reading "Pay your workers".
To further understand the impact, we hired a freelance reporter in-country to visit several of the factories owed payments.
Bangladesh Garment Workers Garment Industry Bangladesh Garment Workers Bangladesh Factory Workers Mosaic Fashion Fashion
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