The ASX-listed company which operates more than 700 stores and employs about 3000 staff released a statement on Monday confirming its board's decision.
"Following recent attempts by the company to informally restructure its operations ... voluntary administration is now the most appropriate way to restructure the group," the statement said.
The company discontinued five of its signature brands in September and closed stores as it attempted to put its finances on a sound footing.
Mosaic said the closure of the Rockmans, Autograph, Crossroads, W.Lane and BeMe brands would allow it to focus on Millers, Noni B, Rivers and Katies, and a standalone online marketplace.
"The group's leadership received the support of a significant majority of its commercial partners and was confident that the restructure would be in the best interests of all stakeholders, resulting in a more focused and financially stronger retailer," the statement read.
But on Monday the board said a "small number of parties" had not agreed with the restructure and a "commercially acceptable" outcome could not be reached with the competition watchdog.
The company said it would continue to trade and would focus on "the key Christmas and holiday trading period".
"The board wishes to reiterate its belief to those who supported the restructure, to Mosaic's customers and, most importantly, to Mosaic's dedicated team across Australia, that the business has a long-term future," it said.
The group has around 763 stores across Australia and New Zealand but has been trying to focus more on big-box Rivers megastores in regional Australia as part of its "BIG strategy".
Mosaic had problems earlier this year as it migrated to a new fully integrated supply chain and distribution system with a new global partner, and had little inventory on hand for the key Mother's Day trading period.
The company's shares have been suspended from the ASX since September 2 because of a delay in filing its 2023/24 financial report, which was due in August.
In February, Mosaic said it made a $5.4 million net profit, up 38 per cent from the previous quarter.
But it also ended 2022/23 with a net liability position of $66 million, including $39 million in debt and $45 million in lease liabilities, which its annual report noted "may cast significant doubt on the group's ability to continue as a going concern".
At the time, Mosaic's board of directors expressed optimism the company would be able to pay its debts as and when they fell due.
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