Baupost-Backed Tile Importer Files for Bankruptcy, Seeks Sale
Most of the tile and stone the company sells through design studios and home-improvement stores are imported, which exposed Mosaic to the shipping disruptions that snarled supply chains during the pandemic and the years that followed, the company said Tuesday in a court filing.
As a result, it either had too little product, or too much to sell, according to Chief Executive Officer Randall Jackson. Mosaic's biggest outlet, Lowe's Home Improvement, refused to share added freight-cost burdens, pushing down the tile importer's margins, Jackson said. The company also blamed rising interest rates and, more recently, tariffs for its financial troubles.
Mosaic was formed from a family business that Baupost agreed to back in 2019. As Mosaic tried to make its main brands — Walker Zanger and Opustone — profitable, Baupost invested an additional $42 million in 2022 and 2023, according to the court filing.
Last year, Mosaic sold Opustone for about $100 million. The company has an agreement to sell its Walker Zanger business as part of the Chapter 11 proceedings. Under that deal the sale must be approved by the court within 45 days.
The company owes lenders about $65 million and has unpaid supplier debt of about $5 million, according to court papers. The Walker Zanger division is also one of dozens of companies being sued by workers who claim they were exposed to hazardous products distributed by various tile and stone retailers. The company denies the allegations.
The bankruptcy case is Mosaic Companies, LLC, 25-11296, US Bankruptcy Court, District of Delaware (Wilmington)
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