Overview
Olvera Advisors were appointed as Voluntary Administrators of EziBuy Holdings Limited in April 2023, following the withdrawal of financial support by Mosaic Brands Limited. EziBuy operated as an online fashion and homewares retailer with a presence in both Australia and New Zealand, including five large-format department stores and a major warehouse in Palmerston North. The administration process focused on winding down physical operations, managing complex creditor and inventory issues, and facilitating a sale of the brand and assets.
Challenges
- Negative equity of $10.45 million despite $104.8 million in revenue (FY22)
- Frozen working capital facilities by Commonwealth Bank (CBA)
- $48.4 million in secured debt to CBA and $16.34 million in second-ranking debt
- High volume of apparel returns (27% of online sales) and inventory backlog
- Complex interdependencies with Mosaic Brands
- Urgent need to close physical stores and reduce operational costs
Turnaround Plan
- Appointed as Voluntary Administrators under the NZ Companies Office
- Initiated a 12-week store closure programme in New Zealand
- Negotiated an operating licence with Mosaic Brands during administration
- Managed the sale of inventory and brand assets to Mosaic Brands
- Reduced warehouse rental costs and terminated the Auckland head office lease
- Conducted feasibility analysis for a standalone e-commerce platform
- Ran a competitive tender for warehouse inventory realisation
- Engaged with unions and Inland Revenue to settle employee and tax claims
- Investigated potential insolvent trading and uncommercial transactions
Results
- Completed wind-down of NZ department stores within 12 weeks
- Realised $3.3 million in store inventory and $7 million in warehouse inventory
- Successfully sold the EziBuy brand to Mosaic Brands
- Reduced ongoing liabilities through lease terminations and cost renegotiations
- Settled key creditor and employee claims under NZ law
Key Drivers of Success
- Rapid execution of store closure and asset realisation strategies
- Effective stakeholder negotiations (landlords, unions, creditors, Mosaic Brands)
- Strategic use of administration to preserve brand value and minimise disruption
- Strong governance and oversight throughout the insolvency process
Key Takeaway
A structured and decisive administration process can enable the orderly wind-down of physical operations, protect brand value, and facilitate asset recovery — even in the face of significant financial and operational distress.
