Britain’s landlords could be forced to accept cut-price rents on more than 500 high-street shops across Britain as Mosaic, the owner of Karen Millen and Principles, collapses into a prepack administration on Monday. Kaupthing, the Icelandic bank owed £400m by Mosaic, will immediately buy back four of Mosaic’s key brands – Karen Millen, Coast, Oasis and Warehouse – in partnership with Derek Lovelock, the Mosaic chief executive, and other group managers who will be handed a 5%-10% equity stake. Neville Kahn at Deloitte has been lined up to handle the administration. Kaupthing and Lovelock have agreed to make sure that all the group’s suppliers will get paid in full – despite the administration process.
Principles, the womenswear chain, and Shoe Studio, a set of footwear brands, will be sold off separately. Debenhams is understood to have tabled an offer for Principles, which already operates concessions in the department-store chain. It will face competition from Peter Davies, a former director of Rubicon, the fashion retailer. Analysts are sceptical that Principles’ high-street shops will be saved, triggering fears that hundreds of stores could shut following the administration. Mosaic also plans to shed unprofitable sites from the other chains as part of the restructuring. Debenhams and House of Fraser were both in crunch talks with Mosaic this weekend. It is estimated that Mosaic accounts for about £150m of concession sales in Debenhams and £100m in House of Fraser.
Click Here: liverpool mens jersey
Image: Mosaic SS09