Mosaic’s outgoing chief executive Scott Evans will remain with the business for three months to facilitate a smooth transition.

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Facioni praised Evans for his work over the past decade in amalgamating nine unprofitable brands and putting the business back on its feet “operationally, strategically and financially”.

“He has now set the business up for success in the coming years, under new leadership, by building an online operation from the ground up, resetting our store strategy and broadening our customer base.”

Mosaic Brands – which also includes Millers, Rockmans, Autograph, W. Lane, Crossroads and Beme – has been executing a turnaround after COVID lockdowns led to falling demand at its shops, leading the company to scramble to expand online.

The fashion retailer booked more than $170 million in losses for the 2020 financial year, but managed to eke out a $2.7 million profit the following year.

Berchtold’s appointment coincided with the release of Mosaic’s results for the December half, during which its net profit jumped 38 per cent to $5.4 million. Sales dipped 10 per cent to $254.5 million.

However, Mosaic’s investors appear displeased with the update, sending the share price tanking to lose 23 per cent in Thursday’s trading session.

During the pandemic, Berchtold called for more support for the struggling retail sector and said the federal government’s JobKeeper program’s thresholds were too high to adequately help the industry.

Berchtold cited personal commitments as reasons for departing The Iconic. The online retailer, which is owned by Luxembourg-headquartered Global Fashion Group (GFG), has never turned a profit in Australia in its 13 years of operating in the country. Documents filed with the corporate regulator show a loss of more than $11 million for the 2022 calendar year in Australia, more than double its $4.7 million loss in 2021.

The Iconic made 116 roles redundant this year amid an organisational restructure and has back-paid former staff more than $1.5 million in underpayments. Former workers have also come forward to detail their experiences at the organisation, describing a culture where management turned a blind eye to staff concerns about pay and working conditions.

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