Mosaic was this week forced to deny claims it had put its Warehouse and Principles brands up for sale. The group fiercely refuted speculation it would package the two chains with its Shoe Studio brand, over which it hoisted a for-sale sign last week.
Baugur-backed Mosaic is in talks with the Icelandic government and the administrators to Kaupthing, which seized its assets after it collapsed last year, to secure its future.
It is understood that Kaupthing believes Mosaic’s clothing brands, which also include Coast, Oasis and Karen Millen, will offer excellent value when the market bounces back.
An industry source said: “There is the impression that the bank is supporting the business and don’t want to break it up.” He added that there was no requirement by Kaupthing for Mosaic to realise value by selling brands.
It would only consider splitting the portfolio if it was made an exceptional offer, which is unlikely in the present climate, he added. “Whether the group will be broken up or hived off in the future seems likely, but it would not make sense now,” he said.
It is understood that key retail and Baugur chiefs met with the Icelandic government in recent weeks to discuss its intentions for its UK retail assets.
Mosaic chief executive Derek Lovelock said: “I can categorically deny we are putting the Rubicon business – Warehouse, Principles and Shoe Studio – up for sale.”
Possible buyers for Shoe Studio could include John Kinnaird – who along with Jason Granite, former director of distress debt fund Agilo, owns Faith – Kurt Geiger, Office and Dune. One source said not to rule out an overseas buyer.
Meanwhile, it is understood Arvoco, the investment vehicle created by Granite, has expressed an interest in troubled JJB’s Qube and Original Shoe Company.
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