Peter Davies has warned that his bid to rescue Principles may be thwarted because of the timing of the administration of its parent company Mosaic Fashions.
Peter Davies, who ran Principles when he was chief executive of Rubicon, said that the administration of Principles’ parent company, Mosaic Fashions, on Monday had happened more quickly than he had anticipated.
He said that it was now unclear whether he would succeed in putting an appropriate bid together in time to buy the chain from administrators Deloitte because of competition from other parties and Deloitte’s need to complete a deal as quickly as possible.
“I was trying to buy it [Principles] and I am still trying to buy it. But the timing of the administration may have screwed my chances. As a private punter it takes time to put a logical offer in place and to rebuild into the future. I would say it would normally take two weeks to do that.”
“I was trying to buy it [Principles] and I am still trying to buy it. But the timing of the administration may have screwed my chances.”
“As a private punter it takes time to put a logical offer in place and to rebuild into the future. I would say it would normally take two weeks to do that.”
A mystery bidder is believed to have emerged for Principles following the administration on Monday. Separate sources told Drapers that Sir Philip Green and Debenhams were also unlikely to buy the womenswear chain.
A spokeswoman for Deloitte said: “The administrators have a responsibility to creditors to maximise recoveries and they will work with those interested parties that can deliver that.”
“It is in the best interest of the business to sell it as quickly as possible,” she added.
Principles was first put up for sale last month by parent company Mosaic Fashions. However Mosaic Fashions collapsed into administration this week before a deal could be completed.