Tis the season to be merry, except if you’re a director at clothing retailer Mosaic Brands.

The clothing group, which went into administration in late October with debts of at least $249 million, apparently did not have directors and officers insurance, according to two sources who could not be identified for confidentiality reasons.

It is highly unusual for a publicly listed company to not pay for such insurance, which exists to protect directors and management against the peril of being sued, if they are found to have failed in their duties and responsibilities.

Mosaic, which owns brands such as Katies, Noni B, Millers and Rivers, continues to trade while in administration. It owes money to its shopping centre landlords, among them Scentre and Vicinity, almost 3000 staff, hundreds of suppliers and its lenders.

FTI Consulting is managing the administration of Mosaic and is also running the sale process of the group, which is also unusual. KPMG, which was appointed the receiver and manager to Mosaic, would typically run the sale process, but it and the secured lender, HilCo, have asked FTI to do that.

Meanwhile, KPMG is operating Mosaic, which has 700 stores. It has the unenviable task of trying to manage the retailer’s furious supplier network. Mosaic’s suppliers are being asked to continue to supply the retailer with clothing and footwear, through its busiest trading period of the year, even though they are owed tens of millions of dollars.

Before Mosaic was put into administration, management had asked suppliers in Bangladesh, China, India and Australia to accept contracts with deferred payments extending in some instances to over three years and to accept a third or half of what they were owed.

KPMG has stabilised Mosaic’s operations and secured stock from suppliers to ensure the retailer can trade through the Black Friday and Christmas sales period. However, it is unclear if those supplier relationships will be reparable in the long term after the business is sold.

The explanation for why FTI, as the administrator, is also selling the business is because it was doing work for Mosaic from late September reviewing its cash flows and forecasts, and potential planning for voluntary administration. During that time, FTI gained information about the historical financial performance of the business, its inventory, store profitability and also its messy corporate structure.