All Saints owner Kevin Stanford is understood to owe more than £250m to nationalised Icelandic bank Kaupthing and has been blocked from issuing new shares in the fashion brand.

Kaupthing has won an injunction at the high court in London to prevent the entrepreneur’s plans, according to the Guardian.

Kaupthing is understood to be able to gain the injunction because Stanford pledged his shares in the company as security for a personal loan from the bank.

Stanford, who co-founded Karen Millen with his former wife, wanted to issue shares in All Saints to a third party but Kaupthing argued it would dilute Stanford’s interest in the company and thus weaken the bank’s loan collateral.

It is unclear which of Stanford’s other financial holdings – which include Baugur-backed Unity Investments - have been pledged as security. Unity took interests in Moss Bros, Debenhams, French Connection and defunct retailer Woolworths.

Baugur took a 35 per cent stake in All Saints three years ago. Stanford, who has 65 per cent of shares had been looking to buy Baugur out.

Topics