Australia’s Mosaic leaves 22 RMG exporters in limbo over $20m dues

The Australian fashion retailer Mosaic Brands Ltd has put 22 Bangladeshi apparel exporters in a difficult position by not paying $19.93 million for apparel products sourced from them.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has already contacted the Australian High Commission in Dhaka twice to address the issue and is planning to send another letter soon, according to documents seen by TBS.

Bangladeshi exporters have been doing business with Mosaic for years under sales contracts that require payments to be made within 120 days after the bill of lading is submitted. 

However, despite receiving the goods, the brand has not paid Bangladeshi exporters for several months, citing financial difficulties. Now the buyer is asking the exporters for discounts of up to 60%, said the affected exporters.

On 6 October, BGMEA asked its members to report any payment issues or business challenges with Mosaic Brands by October 14.

After getting feedback, the apex trade body will reach out to the Bangladesh mission in Australia, the ministries of finance and foreign affairs, as well as the Bangladesh Bank and the National Board of Revenue, to take necessary action in this regard.

According to the BGMEA, of the nearly $20 million owed by Mosaic, $15.20 million worth of goods have already been shipped, while $4.72 million worth remains with the exporters.

The affected exporters are Big Boss Corporation Ltd, Active Composite Mills Ltd, Savar Sweaters Ltd, Padma Satel Arab Fashion Ltd, Sultana Sweaters Ltd, Oasis Fashion Ltd, FNF Trend Fashion Ltd, Fabrica Knit Composite Ltd, NRN Knitting & Garments Ltd, Smug Sweaters Ltd, Bhuyan Warmtex Pvt Ltd, Fine Sweaters Ltd, Hera Sweaters Ltd, Hydroxide Knitwear Ltd, Mega Denim Ltd, Men's Fashion Ltd, Asrotex Group, Reaz Knitwears Ltd, Impress Newtex Composite Textiles Ltd, Pretty Sweaters Ltd, Raiyan Knit Composite Ltd and AST Knitwear ltd.

According to the Mosaic Brands Ltd website, the company, formerly known as Noni B Limited, is one of the largest speciality fashion retailer groups in Australia. Its brands include Millers, Rockmans, Noni B, Rivers, Katies, Autograph, W. Lane, Crossroads, and Beme, with around 1,000 stores across the country.

Exporters told TBS that in October 2024, the company announced plans to wind down several of its brands — Rockmans, Autograph, Crossroads, W. Lane, and Beme — while only Millers, Noni B, Rivers, and Katies would remain active. 

However, the company said it would continue selling goods from the closing brands until Black Friday, they added.

Jabed Hossain Bhuiyan, director of Padma Satel Arab Fashions Ltd, told TBS, "We have been doing business with this buyer [Mosaic] for the past two years. The goods exported in February this year were due for payment in June, but the buyer has yet to make those payments. As a result, we have reduced our shipments to them."

"Mosaic requested more time for payment due to financial difficulties, but we did not accept the request," he added.

"The Australian fashion brand owes us around $2.84 million, including $1.63 million for goods and $1.20 million worth of inventory," Jabed added.

"We have been doing business with Mosaic for the past 10 years, but in the last two years, some payments have been delayed due to their declining credit rating," said an official from Big Boss Corporation Ltd, on condition of anonymity.

"The brand now owes us $3.09 million, which includes $1.63 million for shipped goods and the remaining amount for goods prepared for them," he added.

BGMEA's former director, Mohiuddin Rubel, told TBS that if the buyer continues to delay payments, these exporters may face difficulties in maintaining their business due to overdue Export Permits (EXP). 

He urged all exporters to be cautious about the credit ratings of their buyers when conducting business.