The $25 million penalty that the Federal Court has demanded from collapsed retailer Mosaic Brands will go unpaid , with initial allegations of insolvent trading and director breaches remaining unpursued after the retailer collapsed with debts of nearly $200 million.

Even before the operator of low-budget brands Rivers, Millers, Katies and Noni B appointed administrators in October last year, the clothing and footwear business had fallen foul of regulators several times and had been battling ACCC allegations of consumer law breaches .

Creditors voted for liquidation on July 2 this year. On August 28, the Federal Court found Mosaic Brands had accepted payments for orders that weren’t delivered on time or not delivered at all and ordered it to pay a $25 million penalty.

Mosaic Brands

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