Retail entrepreneur Kevin Stanford is understood to owe more than £250 million to Icelandic bank Kaupthing, and the bank has blocked his plans to issue new shares in young fashion chain All Saints, according to reports.
According to The Guardian newspaper, Kaupthing won an injunction at the high court in London to prevent Stanford’s plans to issue new shares in All Saints.
The newspaper said that Kaupthing had been able to intervene because Stanford had put up his controlling shares in All Saints as part of the collateral for a personal loan from the bank.
Stanford is understood to have had plans to issue new shares in All Saints to a third party, but Kaupthing sought an injunction, arguing it would dilute the businessman’s interest in the company and therefore weaken the bank’s loan collateral.
Stanford is expected to face questions about which of his other financial holdings – which include Baugur-backed Unity Investments - have been pledged as security. Unity took interests in Moss Bros, Debenhams and French Connection.
Baugur took a 35% stake in All Saints three years ago. Baugur’s UK subsidiary BG Holding went into administration last month prompting speculation over what would happen to its shareholdings.
Stanford owns about 65% of All Saints.