Deloitte have been appointed administrators to Mosaic Fashions, the stable of clothing brands, in a deal to sell five of its brands to Icelandic lender Kaupthing in a so-called pre-pack.

Neville Kahn, Lee Manning and Phil Bowers of Deloitte have been appointed joint administrators over the group. The administrators have sold five of the companies – Warehouse, Karen Millen, Oasis, Coast, Anoushka G and the overseas shares of Karen Millen – immediately to a new company called Aurora Fashions, that will be owned by Kaupthing.

“This sale secures the future of these brands and provides funding going forward,” said Phil Bowers of Deloitte in a statement. “The restructuring means 8,700 jobs in these businesses have been rescued by Aurora Fashions, who will continue to trade in 647 concessions and 268 stores across the UK.”

Former Mosaic management will have a minority interest in that new company.

The two other brands under the Mosaic umbrella – Principles and Shoe Studio – will be left behind. Deloitte are however in advance talks to sell those businesses to third parties, possibly within days, although some shops could be closed as a result, a person close to the matter said.

The Principles brand employs more than 2,300 staff and trades from more than 400 outlets of which 94 are single stores and the remainder concession outlets. The Shoe Studio brand employs 1,870 staff and trades from 13 single stores and 270 concessions and has the largest geographical footprint of any UK Shoe retailer.

Equity in Mosaic, which is 49 per cent-owned by Baugur, the collapsed Icelandic investment group, is buried under £450m debt and is in effect worthless, giving Kaupthing the ability to take control.