Deadline set for All Saints buy-out

Fashion chain All Saints must complete a rescue buy-out deal by Tuesday evening or face administration, it was reported.

Lloyds Banking Group, the retailer's lender, are engaged in talks with the retailer about finding buyers for the stakes owned by Kaupthing and Glitnir, the Icelandic banks, the Sunday Telegraph reported.

Lloyds, which has lent £28.5m to the retailer, has placed KPMG, the accountancy firm, on standby to initiate administration proceedings as early as Wednesday morning.

All Saints employs about 2,000 staff and has 63 stores and 47 concessions in the UK, Europe, US and Russia and is best known for decorating its stores with Singer sewing machines.

A consortium led by US private equity firm Goode Partners emerged as the likely candidate for the Icelandic banks' holdings, earlier this month.

But the consortium's position has weakened following the exit of M1, a group co-founded by the former Lebanese prime minister, and MSD Capital, it was reported.

It is understood that if a deal is done, Goode will share control of All Saints with Kevin Stanford, the retail magnate who co-founded the Karen Millen chain with his ex-wife of the same name.

The partnership is expected to ease some of the financial pressure on the business by paying off some of its £53 million debt pile.

A Lloyds spokeswoman said talks were ongoing while All Saints were not available for comment