EziBuy, an online clothing and homeware retailer and a subsidiary of ASX-listed Mosaic Brands, has entered administration.
Mosaic, which acquired EziBuy prior to the pandemic as part of its online strategy, was stated to be profitable in 2021 and 2022 as people switched to online shopping.
However, as in-store shopping returned after the pandemic, the retailer saw its sales decline by 51% in the first half of fiscal 2023, compared to the same period in fiscal 2022.
In the first quarter (Q1) of FY23, Mosaic’s online sales, excluding Ezibuy, accounted for 23% of its revenue.
The company stated: “In recent market updates, the group has noted that the performance of EziBuy has been at odds with the strong and continual digital growth across Mosaic’s omnichannel brands.
“The extent of EziBuy’s sales decline, particularly in the context of the group’s wider positive portfolio of online performance, prompted the board to conduct a strategic review of its operating and cost structure.
“Having considered the result of that review, the board determined that it was in the group’s best interests as a whole that the EziBuy business be restructured.”
The company has appointed Katherine Elizabeth Barnet and Damien Mark Hodgkinson as its administrators.
Mosaic expects the business to emerge as a simplified, profitable and cash-generative online-only operation.
The company has also ensured that the current announcement has no impact on the nine other brands under its portfolio.