Fashion retailer Mosaic Brands has swung to a massive $212 million loss and will close as many as 500 stores across the country after the retailer was ravaged by the COVID-19 pandemic.

At its full-year results announced on Tuesday, Mosaic’s chief executive Scott Evans, who operates brands such as Noni B, Rivers, Millers and Katies, told shareholders the company had been “utterly derailed” by the coronavirus pandemic.

Mosaic reported a statutory loss before tax of $212.1 million, a 1900 per cent decline on the prior year’s statutory profit of $11 million. The huge fall was partially due to $113.5 million in impairments of the company’s brand names and other goodwill.

Revenue fell 16.5 per cent to $736.7 million. The retailer did not declare a dividend.

Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) fell 200 per cent to a loss of $45.8 million, which included a provision of $49 million for unpaid rents, though the company expects that amount to be “materially lower” due to ongoing negotiations.

Part of those negotiations will see Mosaic shut between 300 to 500 stores over the next 12 to 24 months, with the company saying 41 per cent of its current leases were on holdover, and 81 per cent expire in the next two years. The retailer has 1333 stores across Australia.

“The retail rental market in Australia is not paused because of the pandemic – it is fundamentally changed for the future. Some though not all landlords accept that reality,” Mr Evans said. “Shuttered stores work for no one so we aim to minimise closures, but not on uncommercial terms.”

Westfield owner Scentre recently locked Mosaic out of 129 stores due to the two companies being unable to come to an agreement over rental terms. Scentre today revealed a $3.6 billion loss, exacerbated due to a number of tenants unable to pay rent.

Mosaic has been one of the retailers hardest hit by the coronavirus pandemic as its customer base is largely older Australians, a demographic both more susceptible to COVID-19 and less likely to shop online.

Online sales grew just 14.7 per cent across the year, far lower than other retailers who have reported a doubling in digital trade.

Mosaic did not explicitly state how much it claimed from the government’s JobKeeper program for its 6000 employees, however it outlined $48.5 million in ‘government grants’ in its financial results.

“There is no road map to navigate these circumstances, but our operational priorities have been ensuring team and customer safety, reducing inventory and maintaining a strong cash position,” Mr Evans said.

“This has allowed us to reshape Mosaic to take advantage of the fundamental changes happening in retail.”

This story originally appeared in the Sydney Morning Herald. Read the original story here.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.