Town’s fashion stores facing closure
FASHION retailers Oasis and Warehouse are to close their Middlesbrough town centre stores, despite the chains being bought out of administration when parent group Mosaic collapsed earlier this week.
It is believed the two stores, both on Linthorpe Road, will close by Monday, and a total of 15 full and part-time staff will be relocated to other branches.
A spokesperson for the brands could not confirm whether there would be job losses.
Concessions within Debenhams and Binns department stores, and Outfit at Teesside Retail Park, are so far unaffected.
Mosaic went into administration on Monday putting a question mark over the future of 8,700 staff.
Four main brands - Oasis, Warehouse, Coast and Karen Millen - were immediately sold to new company Aurora Fashions.
“A handful of stores across the country will close, but our focus is not to make people redundant,” a spokesperson said.
“We will do whatever we can to redeploy staff to other stores or concessions.
“If positions can’t be found for staff, or they choose to leave, then we will lose numbers.
“We’re at an early stage in the process and until store managers hold meetings with their employees, it’s impossible to say if that will happen,” he added. “We have four great brands that have a good reputation on the high street and an exciting future.”
Mosaic Group owed £400m to Icelandic bank Kaupthing.
The four brands were bought by Derek Lovelock, the former head of Mosaic and now chief executive of Aurora Fashions, along with eveningwear label Anoushka G in a deal thought to have been similar to a debt for equity swap.
Administrators Deloitte are still seeking a buyer for Mosaic’s remaining business, Principles, which has several stores and concessions across Teesside.
