UK fashion retailler all but closes
Administrators for Principles, the UK high street fashion chain, was put into administration by its owners, Mosaic group and administrators Deloitte told to find a buyer or shut it down. No buyer has been found.
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Much of the current stock has been sold to Debenhams, the department store chain - which ironically had contributed to the success of Principles which had, for many years, been a major department.
Now, 66 shops will close, and most of the company's 2,300 people are to be made redundant. The administrators issued redudancy notices for more than 100 head office staff over the weekend.
At the heart of the problems, it appears, is that Mosaic is greatly indebted to Icelandic bank Kaupthing - somewhere in the region of GBP450 million, say reports. But as belt-tightening hits the fashion industry, sales are down across the board.
Reports say that Debenhams offer to buy the stock was preferred over a bid by Peter Davies, former boss of Principles who, it is said, offered to buy the stock and its retail outlets - but not necessarily to purchase it as a going concern.
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