Mosaic Brands has confirmed it is considering the applicability of safe harbour provisions amid operational issues adversely affecting its trade.

Mosaic Brands’ confirmation came in a stockmarket filing and follows a report in The Australian Financial Review that the company had entered a safe harbour.

Safe harbour provisions protect directors from personal liability for insolvent trading while pursuing turnaround options for their companies.

Mosaic Brands said its directors continue to take advice from advisors on their ongoing responsibilities.

“These fiduciary obligations are matters the board has always taken seriously and we confirm that the advice provided has extended, from time to time, to considering the applicability of and compliance with the safe harbour provisions as outlined in the Corporations Act 2001 (Cth) for the directors,” said Mosaic Brands.

“The group confirms that during this time, Deloitte has been advising the company on refinancing considerations that have previously been announced to the market.”

The company added that it continues to work with suppliers to deliver to customers and noted that its senior secured creditor remains supportive.

Mosaic Brands anticipates a recovery in trading performance by the first half of fiscal 2025, once its operational issues have been resolved.