Mosaic fashions (Karen Millen, Principles) in administration

fc123

funkyfreddy9k wrote: »

so who's bought principals then? debenhams or sir philip?

http://www.drapersonline.com/news/multiples/peter-davies-makes-offer-for-principles/5001036.article

Peter Davies, the former chief executive of Rubicon, has made a formal offer to buy Principles from Mosaic Fashions.




Peter Davies said in a statement: “I can confirm that I have made a formal offer to reacquire the Principles business from the Mosaic Group through our advisers Smith & Williamson. Mosaic have made clear that they are prepared to sell Principles and, having run Principles and Warehouse successfully from 2001 to 2005, my colleagues and I are supportive of the brand and are confident that it still has an important role to play on the UK High St.”
He added: “We recognise that the retail environment is tough and is likely to remain so for some time and we have taken care to ensure that we structure the potential acquisition to give us sufficient time and financial strength to rebuild the brand. While we would normally seek to progress discussions in private we felt that given the level of speculation surrounding Principles it was right to clarify our position.”

19 February, 2009 | By Jessica Price Brown
Confusion mounted surrounding the potential sale of Mosaic Fashions’ Principles chain as Drapers went to press.


Sources claimed that despite reports to the contrary, neither Debenhams nor Sir Philip Green’s Arcadia Group business had expressed serious interest in the middle-market womenswear chain.
Arcadia sold Principles to fashion group Rubicon in 2001. It was eventually bought by Mosaic Fashions in 2006. It is unclear whether Arcadia has exposure to selected Principles leases via privity of contract laws.
However, sources said Green was only likely to take over the Principles business, which is believed to be loss-making and which operates in one of the hardest hit sub-sectors in the recession, if he was offered a cash incentive by Mosaic Fashions.
Separately, sources close to Debenhams said a deal made little sense for the department store chain. “It already owns similar brands itself and it would lose all of the Principles business in rival department stores like John Lewis. Also, what would it do with its high street stores?”
Other sources suggested that restructuring specialists could be circling the chain.
Earlier this week, Mosaic confirmed it was considering selling its Principles business after it received a number of approaches for the brand. However, it said it had no plans to sell off any of its other brands which include Oasis, Karen Millen and Warehouse.
A source close to the situation said: “Principles on its own looks a very difficult deal to do. With another brand bolted on it might be more viable.”

fc123

twirlypinky wrote: »

I disagree with most of that tbh.

Karen Millen clothes I gerenally dislike, Coast on the other hand, though poorer quality - I like. Warehouse and Oasis aren't alike either.

Thing is, with clothes, it's all down to personal taste and the rest.
Things like brand loyalty I find fascinating.

I meant product wise, not in it's merchandised, branded environment. I would bet a zillion ££ that if the labels/any brand tags were pulled out (Oasis and Warehouse)+ all the products were hung on wire hangers end to end on a 1000' rail.........some would be pushed to identify each brand.

I only see it like that as I see clothing in it's raw state prior to all the marketing da de da gets added on....this includes it's sales environment.



One of the most fascinating 'power of marketing over substance' experiences is Abercrombie and Fitch' off Savile Row, London.

I take DD and mate and they go ga ga as they enter......I promised not to be embarrassing but really struggled not to exclaim loudly when I picked up a very ordinary vest, made in Vietnam, that was £38.....but then the shop seeps into the soul (even a hardened one like mine) and it makes you want to buy overpriced, overbranded, very ordinary casualwear.........try it if you are in London Central.

funkyfreddy9k

other sources say that debenhams is very keen to keep the principles concessions operating within its stores and has been going above and beyond to help out in recent weeks.

the problem is the principles stand alone stores whiich debenhams do not want to take on.

fc123

twirlypinky wrote: »

I disagree with most of that tbh.

Karen Millen clothes I gerenally dislike, Coast on the other hand, though poorer quality - I like. Warehouse and Oasis aren't alike either.

Phirefly may be able to confirm, but AFAIA, both brands come out of the same quality factories, are made from comparable textiles and trims.
KM has branded buttons/dogtags which 'add value (read as add £££) and is sold in a differrent type of store.
KM is more wannabe WAG in some ways, Coast a bit more wannabe refined/old school. I don't write that in a derogatory way, just brands define themselves by the some of the customers they attract and appeal to.

I could imagine wearing items from all 4 brands for some occasion or another........except, as I am moving more to manufacturing again, it's unlikely in the near future.;)

PasturesNew

They were clothes worn by stick insects... I've never heard of Karen Millen, the others I walked, felt uncomfortable, walked out of about 3x in my life.

These shops, including BHS/Debenhams, haven't been where I've lived... I've spent my life in small villages/rural areas where even the towns didn't have big shops.

funkyfreddy9k

shoe studio has been sold to dune - who are only keeping on the concession. shoe studio stores will close.

I believe principles has also been sold late today and expect an announcement tomorrow although I dont know who won in the end.

Interesting though how the shoe studio deal went with only concessions being kept - debenhams only wants the concessions part of principles so maybe thats the way that went as well?

fc123

funkyfreddy9k wrote: »

shoe studio has been sold to dune - who are only keeping on the concession. shoe studio stores will close.

I believe principles has also been sold late today and expect an announcement tomorrow although I dont know who won in the end.

Interesting though how the shoe studio deal went with only concessions being kept - debenhams only wants the concessions part of principles so maybe thats the way that went as well?

Having had a bit of a think about this, seems the best way forward for many brands. Put them all into one larger unit (reduces overheads significantly) and good for some shoppers. I love Selfridges 2nd floor where one can wander from brand to brand (looking not touching/purchasing ) and they are all in one place.
However, some customers prefer a smaller space and prefer to have their choices narrowed down on their behalf......they don't want to wander aimlessly about from section to section and with a standalone you are more likely to get a more personalised service as staff only sell one brand from one store.

P Green is planning on putting certain brands in BHS. It will then reduce the amount of units he will own in any town centre

Our local Burton is up to let (maybe end of lease) and they have already sliced Dotty P's in half and put Burton in it. Good for 'boyfriend look' shopping too.

Perhaps these clothing chains will go the way of supermarkets and end up with very few smaller sized outlets.


For the future, this will be a good thing.....empty units, once only available to chains, now sat empty with few takers. Rents go down and new start ups with new ideas/concepts can trade from prominent town centre sites.......and the odd one will become a chain of the future.

fc123

funkyfreddy9k wrote: »

shoe studio has been sold to dune - who are only keeping on the concession. shoe studio stores will close.

I believe principles has also been sold late today and expect an announcement tomorrow although I dont know who won in the end.

Interesting though how the shoe studio deal went with only concessions being kept - debenhams only wants the concessions part of principles so maybe thats the way that went as well?

Update on Shoe Studio.......they shafted the local window cleaner £300. Hadn't paid him for ages. He charges them about £10 pwk.
Nine West shut this week.

HO never sent the money, the staff can't pay him from petty cash....(he kept chasing and carried on cleaning their windows for them) but they didn't pay.
Shoddy, nasty behaviour IMO. Typical of chains. He has had the same problem with other chains in the past.
They draw the ££££ out of the local area and treat local people who worked for them as nothing more than cheap (or free) labour...then fokk off when it didn't work out. Oh? Did they offer too much rent on the unit after all so it wasn't profitable?
No matter, they liquidate and pre pack, leaving high rental values in the St....for everyone else to deal with.

Rant over

Geenie

funkyfreddy9k wrote: »

so who's bought principals then? debenhams or sir philip?

I use to love Principals. Being a short !!!!, they were the few that catered to my diminutive stature with decent well cut clothes. Karen Millen looks like a minor WAGS outfit to me, Oasis too young and Coast all nylon, but charging silk prices!

I am bored of the high street all told. All the same carp but in different disguises. I shop online now for my clothes. Brands that are so far removed from the high street in design and quality, I gasp every time I receive an order. Look and you will find.

fc123

Geenie wrote: »

I use to love Principals. Being a short !!!!, they were the few that catered to my diminutive stature with decent well cut clothes. Karen Millen looks like a minor WAGS outfit to me, Oasis too young and Coast all nylon, but charging silk prices!

I am bored of the high street all told. All the same carp but in different disguises. I shop online now for my clothes. Brands that are so far removed from the high street in design and quality, I gasp every time I receive an order. Look and you will find.

My small, niche label sells online from a well known site.

I am pretty clued up on tons of brands (as go to most trade shows and get mail shotted regularly from start ups), but each day, I check it out and there is always something I haven't ever seen before.

We are all part of Chris Andersons 'The Long Tail''.

I feel prilivedged to be part of it and am going to enjoy it for as long as it lasts......