US private equity houses MSD Capital and Goode Partners are understood to have entered in to exclusive talks to buy young fashion chain AllSaints.
The two private equity businesses have teamed up to buy out the shareholdings in AllSaints held by nationalised Icelandic banks Glitnir and Kaupthing.
The deal is set to be wrapped up by the end of the week.
Last week, AllSaints’ main lender Lloyds Banking Group appointed advisors KPMG to explore options should the sale fail to meet this week’s deadline and the process collapse altogether.
It followed the decision by Beirut-based group M1 to pull out of exclusive talks to buy the business last week.
Sources told Drapers that the young fashion chain’s lenders and Icelandic investors would not allow the business to fall in to administration. It is understood that Kaupthing would hold on to its shareholding in the business if required.