International fashion brands Karen Millen, Coast, Warehouse and Oasis are now owned by newly created company Aurora Fashions.
The brands were previously owned by Mosaic Fashions but will now be majority owned by Kaupthing Bank, the backer of Mosaic, and the company’s former management.
Mosaic is believed to have owed Kaupthing £450 million,
The four retail brands will continue to share a common infrastructure and other essential functions.
Sister Mosaic businesses Principles and Shoe Studio are still up for sale and the process is being handled by Deloitte. Apparently several bidders have emerged.
Aurora Fashions chief executive Derek Lovelock, previously chief of Mosaic, says: “We are delighted that the future of some of the UK’s best-loved fashion businesses has been safeguarded and that we can now build upon the excellent reputation our brands already have with customers.”
The collapse of Mosaic was linked to the financial crash in Iceland. The UK arm of Icelandic investment group Bauger, which owned 49 per cent of Mosaic, was placed into administration last month.