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SAVIORS FOR ALLSAINTS: Goode Partners and Lion Capital are this weekend set to put the finishing touches on a 100 million pound, or $166 million, deal to rescue the British retailer AllSaints. “We’re guardedly optimistic,” an AllSaints spokesman told WWD. A deal could be unveiled as early as Tuesday, according to an industry source.
A spokeswoman for Ernst & Young, the accountancy group that has been charged with finding a new investor for AllSaints, said Thursday that all the paperwork still had to be finalized and signed, and that an announcement would be likely next week. Officials at Goode and Lion didn’t return calls requesting comment.
Goode had been working for weeks to get an agreement off the ground, only to see its former partner in the deal, MSD Capital, Michael Dell’s private investment fund, pull out late last week. Lion Capital, whose investments include American Apparel and the lingerie retailer La Senza, replaced MSD last weekend.
According to sources, Goode already holds a stake in AllSaints, which it was seeking to protect with this latest deal. Goode is also an investor in Intermix.
AllSaints has been forced to restructure following the collapse of the Icelandic bank Kaupthing, which held a majority stake in the company through loans of a reported $532.2 million, which the company had used to fuel its rapid international expansion.
Ernst & Young put Kaupthing’s U.K. division into administration, the British equivalent of Chapter 11, and — separately — has been dealing with AllSaints, trying to find it new investors.
AllSaints also risked falling into administration had it not found an investor.