Mosaic has put its footwear brand Shoe Studio up for sale.

The fashion group, which is in talks with its lenders to secure its future, said the decision follows a strategic review by managing director Gordon Baird, which found the brand would thrive in a footwear-focused environment.

The move will fuel speculation over the future of Mosaic’s other brands, which include Karen Millen, Oasis and Coast. Last year Mosaic, which is backed by Icelandic investor Baugur, hived off Whistles from the group.

Chief executive Derek Lovelock said: “Gordon and his team have come up with an excellent strategy and I believe that this plan will be best served in a focused footwear environment.”

Shoe Studio became part of Mosaic following the acquisition of Rubicon Retail in June 2006.

Last week Mosaic issued a profit warning, saying it was adversely affected by the loss of its foreign exchange hedge following the collapse of backer Icelandic bank Kaupthing.

Total sales fell 1.2 per cent and gross margins rose 60 basis points over the 23 weeks to January 3.

It is believed that a number of people had already expressed an interest in Shoe Studio. A source close to the retailer said that Baird’s “sensible ideas” for the business could be achieved with “good commitment and support” from a new backer or existing operator.

Mosaic is being advised by Hawkpoint.