- Nearly 3,000 jobs vanished when Mosaic Brands collapsed owing $355million
- Liquidators are pursuing former executives including a chairman who secured multiple court delays and a CEO who now leads David Jones
- Court orders forcing former executives to disclose assets worldwide have raised the stakes in the hunt for answers
Published:
asserted
orders → vanish → answers
The chairman of a fallen fashion empire who was due to face court this week has had his time in the hot seat pushed back after being called to answer liquidators' questions as they investigate the company's spectacular collapse and spiralling debts.
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they → fall → collapse
In 2024, the previously ASX-listed apparel company behind 700 stores collapsed with a reported $249million in debt, leaving almost 3,000 workers without a job.
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company → list → job
Halfway through 2025, creditors voted for a company liquidation, before the Federal Court issued it a $25million penalty, finding it took payments for orders that were either fulfilled late or not fulfilled at all, the Sydney Morning Herald reported.
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Herald → vote → orders
A preliminary report by liquidators suggested the company may have been insolvent from December 2020 up until liquidators were brought in around October 2024.
uncertain
liquidators → suggest → October
In December 2025, the Federal Court of Australia appointed Wexted Advisors as Special Purpose Liquidators to take a scalpel to the company's affairs in the hope of finding answers behind its downfall.
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Court → appoint → downfall
In their creditors report from May 2026, the liquidators noted that creditor claims were exceeding $355million, with debts outstanding from at least August 29, 2022.
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claims → note → August
According to the report, the liquidators spent 606 hours investigating the company's books and records over five months.
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liquidators → accord → months
However, in a sign of how sensitive the investigation has become, the liquidators have denied disclosing how much they believe Mosaic's directors may owe, saying it would be 'inappropriate' to disclose the figures while legal action is underway.
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action → become → figures
Former chairman of Mosaic Brands Richard Facioni with former Chief Executive Erica Berchtold, who is now CEO of David Jones
Mr Facioni was one of eight senior figures given a worldwide asset disclosure order
Richard Facioni was due for public examination in the Federal Court on Monday as part of a prolonged probe into the collapse of Mosaic Brands, the company behind mid-tier women's retailers such as Noni-B (storefront pictured), Katies, Millers and EziBuy
Mosaic's special purpose liquidators were forced to seek Federal Court directions in May after the company's former directors, including Mr Facioni, claimed privilege over material central to their safe harbour defence against insolvent trading.
The safe harbour defence is a protection that can shield company directors from personal liability for insolvent trading if they are taking genuine steps to restructure a financially distressed company rather than immediately placing it into administration or liquidation.
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they → give → administration
A two-day hearing took place in July on whether the privilege claim should be upheld, with a definitive judgement yet to be made.
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judgement → take → July
To assist with their probe, liquidators obtained production orders back in March requiring 21 parties to hand over relevant company books and records, while 15 parties received summonses to appear before the court for examination.
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parties → assist → examination
Mr Facioni was also one of eight former executives ordered to disclose their assets, debts and liabilities worldwide.
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Facioni → order → assets
Also subjected to these orders were Mosaic's former Chief Executive Erica Berchtold and CFO Luka Softa. They were ordered to file a 'full and detailed affidavit' disclosing 'an itemised inventory of any and all of their property... anywhere in the world'.
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They → subject → world
The week before his scheduled examination, Mr Facioni sought an interlocutory application to have it pushed back to a later date.
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it → schedule → date
Two days later, the interim adjournment was granted, with the court ordering Mr Facioni to serve further evidence including an affidavit and expert medical report by 4pm on the following Friday.
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court → grant → Friday
The same application is also seeking an extension of time for Mr Facioni, and his private equity firm ACTA Capital, to produce certain documents that he has been instructed to hand over, in two separate production orders.
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he → seek → orders
The interlocutory application will be heard in the Federal Court, on a date after October 30, where the court will consider Mr Facioni's medical evidence and decide when his public examination and outstanding production orders should occur.
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examination → hear → evidence
Adding to the secrecy surrounding the case, part of the evidence underpinning Mr Facioni's bid for an adjournment, an affidavit from one of his solicitors, Joseph Abberton, has itself been sealed by the court, with access restricted to the judge, the liquidators and his legal team until October 30.
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access → add → October
The delay follows a string of adjournments already granted to the high-profile private equity operative since he was first given document production orders in March.
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he → follow → March
By September, the orders had been adjourned seven times, before liquidators handed him fresh orders to produce specific documents.
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liquidators → adjourn → documents
Over this time, other senior figures, including Ms Berchtold, who is now David Jones CEO, underwent public examination in the court.
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who → include → court
On Wednesday, Mosaic Brands' former non-executive director Sue Morphet took the stage for public examination
In 2024, the previously ASX-listed apparel company behind 700 stores collapsed with a reported $249million in debt, leaving almost 3,000 workers without a job
Mosaic's former chief financial officer Luka Softa underwent a public examination on September 30.
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officer → take → September
However, the questions he was asked and the answers he provided are being kept under wraps, with his legal team giving the court a written undertaking not to disclose them.
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team → ask → them
On Wednesday, Spotlight Retail Group's chief executive Quentin Gracanin and Mosaic Brand's former non-executive director Sue Morphet took the stage for their examination.
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executive → take → examination
Mr Gracanin simultaneously served as a non-executive director of Mosaic Brands as well as sitting on its risk committee.
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Gracanin → serve → committee
Written undertakings were also presented to the court barring the disclosure of questions and answers provided during their respective examinations.
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undertakings → present → examinations
The Aporia
