Mosaic Fashion which was put into administration, is being partly bought back by Icelandic bank Kaupthing.  The deal would save around 8,700 jobs, although remaining 4,200 jobs would still be at risk.

Administrator Deloitte announced sale of British assets and business of several Mosaic brands – Karen Millen, Anoushka G, Oasis, Coast and Warehouse and Karen Millen’s overseas shares to Aurora Fashions, a new company jointly formed by the former Mosaic management and Kaupthing bank.

Deloitte would continue to run other businesses – The Shoe Studio and Principles, and will hold talks about possible sale.

Such deals, called pre-pack administrations, in which owners first put a company into administration and buy back most profitable assets immediately, have been bitterly criticised by some property companies which object to being left out of talks. But supporters of deal argue that they safeguard maximum jobs.

Chief executive of Aurora Fashions, Derek Lovelock, was delighted that the UK’s renowned fashion businesses were safeguarded and opined that it would be easier to build upon excellent reputation which their brands already had with customers.

The Mosaic brands saved through the deal trade in 268 stores and 647 concessions across the UK.

Principle and Shoe Studio not included in the deal employ 2,300 and 1,870 staff respectively.