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Fashion chain boss denies reports of near-collapse after Icelandic banks sell stake
All Saints boss Stephen Craig is confident that he can pull off a sale of the business in the next fortnight to secure the fashion chain's long-term future.
The company, known for shopfronts full of vintage sewing machines, was put up for sale in February when the nationalised Icelandic banks Kaupthing and Glitnir decided to sell their majority stake. Talks are continuing with a consortium led by US private equity firm Goode Partners after a previous deal fell through.
Craig denied a newspaper report suggesting the fashion chain was on the brink of going into administration, saying its main lender, Lloyds, was supportive. "I'm confident we'll get a deal in the next couple of weeks," he said: "It would be great to get some new shareholders that want to see the brand grow globally."
Craig admitted that one of the investors in the consortium, a small fund, had walked away because "it couldn't transact in the time frame" but said there were parties interested in taking its place. Asked whether All Saints would be forced into administration if the deal collapsed, he said: "That's a matter for the banks. But Lloyds have been very supportive – this is a case study in relationship banking."
He stressed that the business was profitable: pre-tax profits more than doubled to £10.7m in the year to 31 January 2010, although it has debts of £53m. All Saints has 2,000 staff and 63 stores and 47 concessions in the UK, Europe and the US.
The failed banks Kaupthing and Glitnir ended up with a majority stake in All Saints after the collapse of its previous owner, the Icelandic investment group Baugur, which used to own large chunks of the British high street, including stakes in House of Fraser, frozen food chain Iceland and Karen Millen.
Kevin Stanford, the entrepreneur who founded the Karen Millen chain with his ex-wife of the same name, also owns a big stake in All Saints.
