Mosaic wise to assess options as Iceland rebuilds

Iceland has swapped its Viking crew for cabin crew this week, after the country’s government hung up their helmets. Former air hostess Johanna Sigurdardottir is poised to take power as Prime Minister and begin the onerous task of rebuilding the country's shattered economy.

Baugur directors and the management of some Baugur-backed retailers have flown out to Reykjavik in recent weeks to talk with the administrators.

Mosaic has been in talks with backer Kaupthing about its future. As a result, market speculation is spreading that Mosaic, which officially put its Shoe Studio brand up for sale last week, wants to gauge interest in its other brands.

One investor told Retail Week that he has expressed an interest in all three former Rubicon brands – which include Warehouse and Principles as well as Shoe Studio. Another investor is believed to be interested in Principles alone.

Mosaic’s management vehemently deny any brands other than Shoe Studio are up for sale. That’s as may be and undoubtedly true, but while there may not be an official information memorandum circulating for the other brands, certainly sources say information on the other brands is there if you ask.

Insiders close to Mosaic and to shareholder Baugur say that backer Kaupthing wants to keep Mosaic as a portfolio of fashion brands. And there are attractive brands in the group - such as Warehouse, Karen Millen and Coast - which could generate Kaupthing long-term value.

Kaupthing would be sensible to take an opportunity to gauge market hunger for any or all of Mosaic’s brands, whether it is serious about selling them or not, now or in the future.

And, as in all cases, Mosaic, which issued a profit warning earlier this month, would be unwise to turn down an offer they couldn’t refuse. Meanwhile, fellow Icelandic investor Kcaj has hit further choppy waters with the news – revealed by Retail Week yesterday – that maternity chain Blooming Marvellous has hit the buffers.

The collapse throws in to doubt the future of its other fashion brands which include Jones the Bootmaker and Mountain Warehouse, although it is understood that management are on standby to buy the retailers back.

Blooming Marvellous is the third of Kcaj’s portfolio of brands to collapse in to administration. Both Hardy Amies and Ghost found buyers after hitting the buffers – hopefully a good sign that Blooming Marvellous will end up safe in new hands.

And it will be baby steps for the new Icelandic government who will attempt to rebuild its country. What is clear is that the days of the Icelandic investor as marauding raider are over.