Debenhams set to buy Principles stock

Debenhams is poised to buy the remaining Principles stock from owner Baugurs administrators, according to a source close to the impending deal.

Debenhams is poised to buy the remaining Principles stock from owner Baugur’s administrators, according to a source close to the impending deal.

The department store is expected to buy the stock and keep the concessions it currently runs in its stores, but is not expected to take-on rival concessions or the 90 stand alone high street outlets.

The deal is expected to be announced later today, according to the source, and could spell the end of the Principles brand.

Principles, which employs 2,500 people, was part of the Baugur-backed fashion empire Mosaic that was placed into a pre-pack administration on Monday as part of a rescue package agreed with its financial backer Kaupthing, which now controls the group.

Sister companies Oasis, Karen Millen, Coast and Warehouse were bought back by Kaupthing in partnership with the former Mosaic management, who have created a new controlling company Aurora Fashions

The remaining retailer Shoe Studio, which owns brands including Pied Terre and Bertie, was bought by high street rival Dune on Wednesday, leaving Principles the only brand without rescue until today.

Co-founder Peter Davies attempted bid for the chain earlier this week, according to reports.

It is not yet clear whether any Debenhams head office staff will transfer to the department store.

Debenhams initiated a review of its advertising account before Christmas after it parted company with Miles Calcraft Briginshaw Duffy after four years. The review is being overseen by head of marketing Alison Jones, and the shortlisted agencies are understood to be JWT, M&C Saatchi and BBH.

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