Mosaic, which owns some of the most famous brands on the UK High Street, has gone into administration, with debts of about £400m.
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 the group, including Oasis, Karen Millen, Warehouse and Coast have been immediately sold to Mosaic's main creditor - Icelandic bank Kaupthing.
But most of the 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.
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.
'Advanced' talks
'Advanced' talks
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.
SOLD ON Karen MillenOasisCoastWarehouseAnoushka G
SOLD ON Karen MillenOasisCoastWarehouseAnoushka G
It added it was looking forward to "an ongoing supportive relationship with its suppliers and other key partners who have been very loyal to all the Mosaic brands over the challenging past few months".
It added it was looking forward to "an ongoing supportive relationship with its suppliers and other key partners who have been very loyal to all the Mosaic brands over the challenging past few months".
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 - within other stores.
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 - within other stores.
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 and Aurora said negotiations were "well advanced" for Shoe Studio to find a new buyer, while "several bidders" had emerged for Principles.
However, they are continuing to trade while the administrators look for buyers for the two firms and Aurora said negotiations were "well advanced" for Shoe Studio to find a new buyer, while "several bidders" had emerged for Principles.
Criticisms
Criticisms
IN ADMINISTRATION PrinciplesThe Shoe Studio
IN ADMINISTRATION PrinciplesThe Shoe Studio
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.
Pre-packs often involve the sale of the business to the existing owners or management.
Pre-packs often involve the sale of the business to the existing owners or management.
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.
Coast was part of Mosaic's business that moves under the new management
Coast was part of Mosaic's business that moves under the new management
But there are criticisms that such deals are not always transparent, that they do not always fairly value the firm and that creditors may not be aware of the deal's existence until after the sale.
But there are criticisms that such deals are not always transparent, that they do not always fairly value the firm and that creditors may not be aware of the deal's existence until after the sale.
This has led to perceptions - especially where existing managers or owners buy a business - that the owners have effectively taken on a debt-free business and can trade as before, while creditors lose out.
This has led to perceptions - especially where existing managers or owners buy a business - that the owners have effectively taken on a debt-free business and can trade as before, while creditors lose out.
Kaupthing, Iceland's largest bank, was the country's third to be nationalised in October last year.
Kaupthing, Iceland's largest bank, was the country's third to be nationalised in October last year.
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