Ezibuy says it ships 15 million catalogs a year.
Administrators have been appointed at online retailer Ezibuy.
In a statement to the Australian exchange, Mosaic says that sales of the brand have declined.
Total turnover in the first half of the financial year was 51% lower than in the same period a year earlier.
* Mosaic Brands says shipping delays are causing New Zealanders to not receive orders
* Ezibuy posts a loss of $28.9 million in a year
* Fashion chain Jeanswest collapses in Australia as retail continues to struggle
This prompted Mosaic to review its business and cost structure and determined that it was in the group’s best interest to restructure Ezibuy.
It had appointed administrators. It said the hope was that the brand would emerge as a “simplified, profitable, cash-generating, online-only operation and one more closely aligned with the group’s successful digital strategies for its own brands”.
“The board believes that this process to restructure Ezibuy is in the best interest of the group’s shareholders as it will improve the group’s overall net asset position and operating cash flow.”
Ezibuy was founded in 1978. It was bought by Mosaic from previous owners Woolworths shortly before the pandemic.
Mosaic said it was profitable in fiscal years 2021 and 2022 but was hit by pandemic lockdowns.
Mosaic Brands also operates brands such as Millers, Autograph and Katies.
In its most recent annual report, it said it had 2 million email subscribers and sent out 15 million catalogs a year in Australia and New Zealand.