Debenhams is believed to be close to securing a deal to buy a significant proportion of Principles’ stock, but it is not expected buy the Principles brand name or its shops.
Debenhams is expected to buy the Principles stock destined for the department store and for the chain’s stores from administrator Deloitte later today. It is not thought to be buying the stock destined for John Lewis or House of Fraser.
The womenswear brand has a significant number of concessions within Debenhams, which generate around £60 million worth of sales, and the department store is understood to be desperate to ensure that it has sufficient stock to fill the space in store until it can turn on a bigger own buy to fill the store space.
The deal will lead to several thousand job losses as Principles’ 90 stores are expected to close.
Peter Davies, the former chief executive of Rubicon, which owned Principles, had been attempting to rescue Principles and a significant number of its shops. However he failed to raise finance quickly enough to complete a deal.
Principles went into administration on Monday as part of the collapse of Mosaic Fashions. The management of Mosaic Fashions and its bank Kaupthing immediately acquired Oasis, Warehouse, Karen Millen and Coast from administrator Deloitte but left Principles behind.
Mosaic Fashions’ footwear concession business Shoe Studio Group was sold to Dune on Wednesday.