'No buyer' for Principles' shops

Principles was owned by Mosaic, which collapsed this week

Department store chain Debenhams is in discussions to buy the Principles fashion brand after a buyer could not be found for the whole chain.

The BBC understands that the deal, which has not been finalised, would involve Debenhams buying the Principles name and its clothing stock only.

Debenhams is expected to take over 121 of Principles' 300 concessions but not buy its 94 High Street stores.

Principles was owned by Mosaic, which collapsed earlier this week.

The parent company had debts of about �400m, which led to the administrators having to be called in.

The Principles brand employs more than 2,300 staff and trades from more than 400 outlets, of which 94 are single stores. The remainder are concession outlets within other stores.

Most of Mosaic's other brands, including Oasis and Karen Millen, were sold to Mosaic's main creditor, Icelandic bank Kaupthing. A new firm owned by Kaupthing and former Mosaic bosses, called Aurora, was formed, which now controls those brands.

MOSAIC BRANDS SAVED Karen Millen Oasis Coast Warehouse Anoushka G

Principles and the Shoe Studio, which employs 1,870 staff and trades from 13 single stores and 270 concessions, were left in the hands of administrator Deloitte.

The deal to sell most of the brands to Aurora is known as a pre-packaged administration.

Pre-packs often involve the sale of the business to the existing owners or management.

This is when a sale of an insolvent business is agreed before the administrator is appointed and is then rapidly executed without the business being offered on the open market.

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