Baugur is understood to be interested in a 40 to 50 per cent stake in the retailer. The remainder will be held by the new management team and Icelandic bank Landsbanki Islands. The main beneficiaries of the deal will be MKOne managing director Elaine McPherson and finance director David Thompson, who between them own 90 per cent of the retailer, as well as Philip Green, who is slated to walk away with£4 million.
McPherson and Thompson will leave the retailer once the deal is completed. Former Dunnes Stores head of non-food Les Johnston will replace McPherson, and former Blacks Leisure financial director Andy Hall will replace Thompson. The rest of the management team are expected to remain at the retailer.
A Baugur spokesman said: 'Baugur is in value retail. It has always seen value as the place to be. This segment is growing faster than the rest in the sector. This company has done well in the past two years, but it can do better. The refurbishment of stores in the transition from Mark One to MKOne is yet to be completed. By combining our expertise in value retail with the incoming management team, we can do something interesting with the business.'