2,300 Principles jobs under threat

Sources said Debenhams would buy Principles stock from Deloitte, but not the chain's stores or brand, throwing doubt on the future of staff.

Principles trades from more than 400 outlets - 94 standalone stores and the rest concessions - and employs more than 2,300 staff.

Its parent company, Mosaic Fashions, went into administration on Monday, with several of its brands immediately sold to a new company controlled by Icelandic bank Kaupthing, to which Mosaic owed £400 million.

Debenhams already has Principles concessions in its department stores.

Mosaic's chains Oasis, Warehouse, Coast and Karen Millen have been bought by the newly formed company Aurora Fashions, owned by Kaupthing and Mosaic's former management.

On Wednesday Mosaic's administrator, Deloitte, announced the sale of The Shoe Studio to footwear retailer Dune, safeguarding more than 1,600 jobs.

Deloitte has kept trading Principles, the only remaining business.

Former Rubicon director Peter Davies, who ran Principles from 2001 to 2005, announced last week that he had made a formal offer to reacquire the chain.

The brand was created in 1984 to provide clothing aimed at "career women at affordable prices", developing its focus on to fashion for the "30-something" customer.