Hunter 'mulls over' Shoe Studio bid

Published on Sunday 1 March 2009 19:51

SIR Tom Hunter's West Coast Capital group is believed to have submitted a bid for Shoe Studio, part of the ailing fashion group Mosaic, which is expected to enter "pre-pack" administration within days.

Other businesses believed to be interested in taking over Shoe Studio include rival chain Dune and directors from Rubicon, Shoe Studio's former owner.

Principles, the women's wear chain, is also believed to have been put up for sale by Mosaic, 49 per cent of which is owned by Icelandic group Baugur.

Debenhams is understood to have tabled an offer for Principles – which already has concessions within its department stores – while former Rubicon director Peter Davies, who ran Principles from 2001 to 2005, announced late on Friday that he had made a formal offer to reacquire the chain.

Reports over the weekend suggested Mosaic is considering going into a "pre-pack" administration, a process by a which a buyer is identified before administrators are called in.

The group – which owns brands such as Karen Millen and Warehouse – is said to have lined up Neville Kahn at Deloitte to handle the administration.

Once in administration, the Icelandic bank Kaupthing, which is owed more than 400 million by Mosaic, will reportedly buy back four of the group's key brands – Karen Millen, Coast, Oasis and Warehouse – while Shoe Studio and Principles are sold off.

A Mosaic spokesman declined to comment on the reports, but he said talks with Kaupthing were progressing well.