Retail chains fall into administration
A CLUTCH of High Street names were placed in administration today amid widening economic gloom.
Deloitte was appointed by Icelandic-owned Mosaic – the name behind Principles, Oasis, Karen Millen, Warehouse and Coast, while KPMG was called in at budget jeweller Diamonds and Pearls.
Deloitte said the majority of the Mosaic business – the Oasis, Karen Millen, Warehouse and Coast brands- and 8,700 jobs had been immediately rescued by a pre-pack deal involving the former management team and Kaupthing bank.
But Principles and The Shoe Studio have gone into administration. Principles brand employs more than over 2,300 staff and trades from over 400 outlets of which 94 are single stores.
The Shoe Studio brand employs 1,870 staff and trades from 13 single stores and 270 concessions.
Phil Bowers, joint administrator, said: “It is the administrators’ intention to trade the remaining two entities, Principles and The Shoe Studio. The group had previously engaged advisors to sell these entities and we are already in discussions with various parties interested in purchasing the assets.”
Bedford-based Diamonds and Pearls, which has 15 stores across the North West, has also gone into administration.
Myles Halley and Richard Philpott from KPMG Restructuring have been appointed to the firm, which employs 300 people at 91 stores across the country.
The administrators are trading most of the stores whilst they consider the options for the chain.
Mr Halley said: “We intend to trade the business whilst we seek a buyer as a going concern; however, we envisage that certain of the loss-making stores will be closed in the coming days and this is likely to result in a number of redundancies.”
