Aim: to be faster and more focused
The separation will allow the management of the
new companies to make better decisions faster, because they no longer
have to take other branches of the company in to account.
This is a useful strategy, because the two
companies have different ideas on expansion: Coast wants international growth
and more locations, while Oasis and Warehouse seek to expand through a larger
number of franchises and more sales online.
More manageable for possible buyers
Furthermore it is easier to find buyers for
separate companies. This could be useful, because an important shareholder of
the Aurora group is the no longer existing Icelandic Kaupthing bank.
Aurora was founded in 2009 as a host structure
for the brands Coast, Karen Millen, Oasis and Warehouse. Back then they were separated from the ailing fashion group Mosaic Fashions, just before it went bankrupt.
Beside the four previously named brands, that group also contained Principles and
Shoe Studio.
Karen Millen separated from the
others in 2011, after which the brand started an
international expansion. According to the British paper The Independent, CEO
Mike Shearwood is planning on buying the fashion label. Karen Millen however
would love to get back her own brand name, after having to let it go in 2008.
