MK One could be put into administration if the Baugur-owned value chain fails to find a buyer, according to The Daily Telegraph.
Plans to place MK One in administration are understood to have been drawn up by administrator Lee Manning of Deloitte, which is advising Baugur on the sale. Former MK One director Mark Brafman is understood to be interested in buying nearly 100 stores out of administration. Brafman was a director of MK One in the mid-1990s.
But sources told the newspaper that administration was Baugur's least favoured option and the Icelandic investor is still hopeful of selling the business as a going concern.
A pre-pack administration deal would anger MK One's suppliers who are thought to be owed millions.