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Mosaic firms into administration | Mosaic firms into administration |
(10 minutes later) | |
Mosaic, which owns some of the most famous brands on the UK High Street, has gone into administration, with debts of about £400m. | |
But most of group, including Oasis, Karen Millen, Warehouse and Coast have been immediately sold to Mosaic's main creditor - Icelandic bank Kaupthing. | But most of group, including Oasis, Karen Millen, Warehouse and Coast have been immediately sold to Mosaic's main creditor - Icelandic bank Kaupthing. |
A new firm owned by Kaupthing and former Mosaic bosses has been formed. | A new firm owned by Kaupthing and former Mosaic bosses has been formed. |
But Principles and The Shoe Studio - two of Mosaic's other brands remain in administration, risking 4,200 jobs. | |
The restructuring under the new management firm, Aurora, has saved 8,700 jobs said administrator Deloitte. | The restructuring under the new management firm, Aurora, has saved 8,700 jobs said administrator Deloitte. |
The new funding package would "enable the brands to develop and realise their potential", an Aurora spokesman said. | The new funding package would "enable the brands to develop and realise their potential", an Aurora spokesman said. |
Save jobs | |
The deal, which saw several Mosaic brands sold on, is known as a pre-packaged administration. | The deal, which saw several Mosaic brands sold on, is known as a pre-packaged administration. |
This is when a sale of an insolvent business is agreed before the administrator is appointed and is then rapidly executed without the business being offered on the open market. | This is when a sale of an insolvent business is agreed before the administrator is appointed and is then rapidly executed without the business being offered on the open market. |
Many argue that they are a useful tool for saving a firm where any delay could to destroy or severely reduce its value - preserving jobs in the process. | Many argue that they are a useful tool for saving a firm where any delay could to destroy or severely reduce its value - preserving jobs in the process. |
The Principles brand employs over 2,300 staff and trades from over 400 outlets of which 94 are single stores and the remainder concession outlets. | The Principles brand employs over 2,300 staff and trades from over 400 outlets of which 94 are single stores and the remainder concession outlets. |
The Shoe Studio brand employs 1,870 staff and trades from 13 single stores and 270 concessions. | The Shoe Studio brand employs 1,870 staff and trades from 13 single stores and 270 concessions. |
However, they are continuing to trade while the administrators look for buyers for the two firms. | However, they are continuing to trade while the administrators look for buyers for the two firms. |
Kaupthing, Iceland's largest bank, was the country's third to be nationalised in October last year. |