RACE FOR ALLSAINTS: AllSaints, the British high street clothing brand run by Kevin Sanford, has not yet found its white knight. On Wednesday, a spokesman for the company said recent negotiations with a prospective investor had been terminated. “Discussions are continuing with other parties who have previously expressed serious interest, and remain closely involved,” he said.
This story first appeared in the March 31, 2011 issue of WWD. Subscribe Today.
AllSaints was thought to have been in talks for the past week with a consortium led by M1 Group, which owns Faconnable, and the former Goldman Sachs partner Richard Sharp. The AllSaints spokesman declined to confirm the name of any potential investors.
AllSaints has been forced to restructure following the collapse of the Icelandic bank Kaupthing, which held a majority stake through loans of a reported $532.2 million. The company had used those loans to fuel its rapid international expansion, particularly in the US.
Ernst & Young, the accountancy group, has put Kaupthing’s UK division into administration, the UK equivalent of Chapter 11, and — separately — has been dealing with AllSaints, trying to find it new investors. The US-based fund Och-Ziff is still thought to be in talks with AllSaints, although all parties involved have declined to comment.