Mixed fortunes at Mosaic

By: Joe Ayling - 4 March 2009 16:02

The pre-pack administration of Mosaic Fashions is great news for five of its high street brands, but the fate of two others hangs in the balance.

As Mosaic's administrators Deloitte said this week, discussions are underway with suitors for the the fashion group's Principles and Shoe Studio stores.

There was a sigh of relief late Monday when Mosaic's Warehouse, Oasis, Coast, Karen Millen and Anoushka brands were sold to Aurora Fashions, a new company jointly owned by Iceland's Kaupthing bank and former management. It was confirmed that 8,700 jobs were to be saved, 7,861 in the UK.

However, Principles and Shoe Studio still need a buyer to save the 4,170 workers they employ in stores and concessions throughout the UK.

Last month's job losses at shoe chain Stylo, which was rescued but shed 2,500 jobs in the process, do not bode well for Mosaic's remaining UK workforce who dread joining the deepening queues at UK job centres.

The collapse of the Icelandic banking system, and that of Baugur Group's UK holdings last month, always seemed likely to have repercussions for the UK high street.

However, Mosaic said last month that the filing would "in no way" affect its operations, confirming that talks with Iceland's Kaupthing Bank over the company's long-term funding were "progressing satisfactorily".

While they have indeed progressed satisfactorily for two thirds of Mosaic's UK employees, the rest will be anxiously looking over their shoulders for days to come.

By Joe Ayling, news editor.

UPDATE: UK: Mosaic Fashions broken up to save chains