Tuesday, 3 March 2009

Mosaic is latest to go down "pre-pack" route

With the news at the weekend (reported in the Sunday Telegraph) that Mosaic
Fashions had debts of more than £400 million, and only three months left within which to arrange refinancing, it is heartening to learn the Mosaic group has gone into administration, with the UK business and assets of Warehouse, Oasis, Coast, Karen Millen, Anoushka G and the overseas shares of Karen Millen acquired in a pre-pack deal by a newly formed group called Aurora Fashions, owned by Kaupthing with a minority stake held by senior management. According to the Draper's report, through the administration the group has been able to streamline its operations putting it in better shape to cope with the economic downturn.

Deloitte, as administrators will continue to trade Principles and Shoe Studio, which are both in discussions with potential buyers. These will also continue to trade as normal pending sales. Former Rubicon diector Peter Davies confirmed at the weekend that he was interested in Principles, and Debenhams is also thought to have held talks. Deloitte are said to be confident that an announcement about sales of these remaining brands will be made in a couple of days.

Given the importance of the Mosaic stable to our high street and the number of jobs that were at risk, Fashionista thinks its great news that a deal has been done and hopes the newly formed Aurora Fashions makes it through what will undoubtedly be a rocky first year of trading.