Creating a severe impact Bangladesh’s garment sector, Mosaic Brands’ recent decision to enter voluntary administration has endangered the jobs of thousands of workers in 23 factories owed over $30 million. Among those affected is 26-year-old garment worker Yasmin Laboni, who worries about feeding her two children and covering basic expenses. Mohammad Alam Mia, Factory Manager, who earns $450 a month, fears mass layoffs if payments are not received.
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) is calling for an audit to uncover the full scope of Mosaic’s unpaid debts, which span across suppliers in Bangladesh, India, and China. Suppliers like Ohmar Chowdhury, Owner, Hydroxide Knitwear, have been particularly hard-hit. Scaling up production to meet Mosaic's demands, including lengthy 120-day payment terms—four times the industry standard—Chowdhury now faces potential losses he described as ‘criminal fraud.’
In September, Mosaic announced it would close five of its brands—Rockmans, Autograph, Crossroads, W.Lane, and BeMe—to focus on core brands like Millers, Noni B, Rivers, and Katies. The company filed for administration in October, calling it ‘a necessary process to reset’ and secure the business's future. Erica Berchtold, CEO, said, the move is aimed at accelerating plans to focus on key brands and reach more customers.
The association has appealed to Australia's High Commission but was advised to seek independent legal counsel. Mohiuddin Rubel, Former Director, BGMEA of the association, criticised Mosaic’s actions, arguing it tarnishes Australia’s reputation.
Echoeing these concerns, Oxfam Australia highlights, unpaid debts only exacerbate existing exploitation in the garment industry, where minimum wages hover around $6 per day. The financial strain has led suppliers like Sarwar Hossain, manager at Sultana Sweaters, to delay wages and endure a mounting burden. One of Mosaic’s creditors, KPMG, states, they are working with suppliers to stabilise operations, leaving the future uncertain for many.
