- Fashion retail group Mosaic Brands (MOZ) has seen 129 of its stores temporarily closed by its landlord Scentre Group (SCG)
- Scentre Group reportedly locked certain stores in its Westfield centres, over rental disputes with retailers
- The rental disputes were caused by the ongoing COVID-19 pandemic and its resulting economic impact to the retail sector
- The decision will impact around 400 Mosaic team members, as well as workers of other locked out retailers, including Strandbags
- After spending much of yesterday in the red, Mosaic Brands closed 0.69 per cent in the green for $0.72 per share
- On the same day, Scentre Group closed in the grey for $1.99 per share.
Fashion retail group Mosaic Brands (MOZ) has seen 129 of its stores temporarily closed by its landlord Scentre Group (SCG).
Mosaic Brands consists of a number of well-known apparel brands, including Millers, Rockmans, Noni B, Rivers, Katies, Autograph, W. Lane, Crossroads, and Beme.
While the company operates through almost 1,400 stores nation-wide, the 129 stores which have been closed are located in Westfield shopping centres.
Retail real estate company Scentre Group reportedly locked certain retailers out of its stores due to rental disputes. The disputes are related to the ongoing COVID-19 pandemic and the resulting economic impact on businesses.
In recent months, Mosaic had been paying Scentre reduced rent amounts, while attempting to negotiate a new rental agreement. This was in reaction to coronavirus lockdowns, which dramatically impacted company revenue.
Unable to see eye-to-eye on the rental situation, Scentre has closed down Mosaic, as well other non-rent-paying retailers, such as Strandbags. The decision will impact around 400 Mosaic team members, as well as numerous workers of other locked out retailers.
The company has stated that all of its impacted team members have been redeployed elsewhere and are receiving company support.
Mosaic Brands’ Chairman, Richard Facioni, condemned the actions taken by Scentre in the midst of unprecedented economic struggles.
“These actions are extremely disappointing, given the current environment, and difficult to comprehend in the context of a relationship that spans close to 40 years,” he said.
“Mosaic continues to conduct rental negotiations in good faith with all landlords, including Scentre Group, in the spirit of sharing the burden of the impact of the COVID-19 crisis, consistent with Government recommendations,” he added.
After spending much of yesterday in the red, Mosaic Brands closed 0.69 per cent in the green for $0.72 per share.
On the same day, Scentre Group closed in the grey for $1.99 per share.