A potential buyer is understood to have emerged for Principles, the middle market womenswear chain owned by Mosaic Fashions and basic financial information on Mosaic Fashions’ other brands is also now thought to be available to interested parties, although none are thought to be officially up for sale.
Sources in the market told Drapers that corporate advisory boutique Hawkpoint was holding basic profit and loss information on all of Mosaic Fashions’ brands, which would be made available to any serious buyers that requested it. At least one party is thought to have requested information on Principles.
However, the process is understood to be as much about gathering realistic market valuations for each of Mosaic’s brands, which include Oasis, Warehouse and Karen Millen, in the current market as it is about selling them.
Mosaic Fashions is currently in refinancing talks with its Icelandic backers Kaupthing, which went into administration last year. Current market valuation information on its brands would enable Mosaic Fashions and Kaupthing to make a judgement on whether the existing shape of the Mosaic Fashions business represents the best value for its shareholders. Baugur is one of the group’s largest shareholders.
There are two schools of thought on the future shape of Mosaic. Some industry insiders believe a break-up of the company would unlock the most value for shareholders in the business. However, others argue that the level of shared services between the individual companies and the associated cost savings mean that the brands are better off as part of a large group.
Hawkpoint is in the process of selling off Mosaic Fashion’s footwear concession business Shoe Studio Group. However the Shoe Studio sale process differs to the womenswear brands situation in that there is an official Information Memorandum and Mosaic has openly said it plans to offload the business to focus on its womenswear brands.
Mosaic Fashions was unavailable for comment.