Kaupthing, the Icelandic bank which is owed around£450m by Mosaic, will take majority control of the business.
Principles and Shoe Studio are set to be sold as part of the process. Last night former Rubicon diector Peter Davies confirmed his interest in Principles, and Debenhams is also thought to have held talks.
Mosaic will use the administration to shed some unprofitable sites, and will continue to operate Oasis, Coast, Karen Millen and Warehouse going forward.
The administration has been prompted by the difficulty Mosaic has had in servicing its huge debt burden. Senior management, which will take a 5-10 per cent stake in the business after the pre-pack, is confident that with a manageable debt burden, the pared-down group has a future.
The company had been hopeful that the administration would take place yesterday, but it could not be completed in time.