JohnCenaFan28
03-07-2009, 06:25 PM
The "vast majority" of the 2,300 jobs at high street fashion retailer Principles are expected to go, sources said.
Administrators said 66 stores are to close after the firm was unable to find a suitable buyer for the business, but Debenhams would acquire most of its stock.
Principles employs more than 2,300 staff and the "vast majority will go", sources said.
It is understood that discussions are still ongoing but the vast majority of Principles staff at more than 400 outlets are expected to lose their jobs.
Lee Manning, of administrators Deloitte, said staff would be provided with support including "a fast track process for paying redundancy entitlements".
The administrators blamed "current market conditions" for failing to find a suitable buyer to take the business on as a going concern.
"Regrettably, we will be closing 66 high-street Principles stores, but will be continuing to trade the remaining 19," Mr Manning said.
"For the time being the remaining 172 non-Debenhams concessions will also remain trading. Unfortunately there will be significant redundancies over the coming weeks, and we can confirm that yesterday 110 head office staff were made redundant."
He went on: "Debenhams will be acquiring most of the Principles' shop stock, including that in the 121 concessions within its stores. We have given Debenhams a temporary non-exclusive licence to continue operating the Principles brand."
Principles' parent company, Mosaic Fashions, went into administration on Monday, with several of its brands immediately sold to a new company controlled by Icelandic bank Kaupthing, to which Mosaic owed £400 million.
-Nova
Administrators said 66 stores are to close after the firm was unable to find a suitable buyer for the business, but Debenhams would acquire most of its stock.
Principles employs more than 2,300 staff and the "vast majority will go", sources said.
It is understood that discussions are still ongoing but the vast majority of Principles staff at more than 400 outlets are expected to lose their jobs.
Lee Manning, of administrators Deloitte, said staff would be provided with support including "a fast track process for paying redundancy entitlements".
The administrators blamed "current market conditions" for failing to find a suitable buyer to take the business on as a going concern.
"Regrettably, we will be closing 66 high-street Principles stores, but will be continuing to trade the remaining 19," Mr Manning said.
"For the time being the remaining 172 non-Debenhams concessions will also remain trading. Unfortunately there will be significant redundancies over the coming weeks, and we can confirm that yesterday 110 head office staff were made redundant."
He went on: "Debenhams will be acquiring most of the Principles' shop stock, including that in the 121 concessions within its stores. We have given Debenhams a temporary non-exclusive licence to continue operating the Principles brand."
Principles' parent company, Mosaic Fashions, went into administration on Monday, with several of its brands immediately sold to a new company controlled by Icelandic bank Kaupthing, to which Mosaic owed £400 million.
-Nova