Mosaic Fashions has been put into pre-pack administration, with most of the group being sold immediately to Icelandic bank Kaupthing and Mosaic’s management.

The UK business and assets of Warehouse, Oasis, Coast, Karen Millen, Anoushka G and the overseas shares of Karen Millen will now be run under a newly formed group called Aurora Fashions.

Deloitte joint administrator Phil Bowers said: “This sale secures the future of these brands and provides funding going forward. The restructuring means 8,700 jobs in these businesses have been rescued by Aurora Fashions, who will continue to trade in 647 concessions and 268 stores across the UK.”

The administrators will continue to trade Principles and Shoe Studio, which are both in discussions with potential buyers. These will also continue to trade as normal pending sales.

Aurora chief executive Derek Lovelock said: “We are delighted that the future of some of the UK’s best loved fashion businesses has been safeguarded and that we can now build upon the excellent reputation our brands already have with our customers.”

He added: “We look forward to our continuing relationship with Kaupthing and also to the end of what has been a difficult chapter in our history.”