Buyers have been sought for Principles and Shoe Studio – both of which are likely to be sold in as pre-packs. The FT reports that the two companies combined are expected to fetch less than £20m. Kaupthing is owed £400m. Baugur’s shareholding in the group is now worthless.
Oasis, Karen Millen, Coast and Warehouse will be retained in a new company run by present management, with financial support from Kaupthing in the hope that valuations recover. It is believed that the bulk of stores will continue to trade, while the administrators seek to renegotiate lower rents with s landlords. Unprofitable stores, and those on which landlords refuse to negotiate, will be closed.
Mosaic operates around 1,800 stores and concession in the UK. The closures and rent negotiations will add further pain for landlords, who are already faced with record vacancies.
Baugur's other group of retailers is Aurum, which includes jewellers Goldsmiths, Mappin & Webb and Watches of Switzerland.