Landlords could be forced to accept cut-price rents on more than 500 high-street shops across Britain as Mosaic, the owner of Karen Millen and Principles, collapses into a prepack administration.

Kaupthing, the Icelandic bank owed £400m by Mosaic, will immediately buy back four of Mosaic’s key brands – Karen Millen, Coast, Oasis and Warehouse – in partnership with Derek Lovelock, the Mosaic chief executive, and other group managers who will be handed a 5%-10% equity stake.

Neville Kahn at Deloitte has been lined up to handle the administration.

Sunday Times