Icelandic bank Landsbanki is poised to sell its stake in department store House of Fraser.

Landsbanki is preparing to sell off its 35% stake, with smaller shareholders and members of the management team or former directors possibly also using the opportunity to sell shares in the retailer, according to the Mail on Sunday.

Landsbanki acquired the House of Fraser stake after the collapse of Icelandic investment group Baugur in 2009.

In January the retailer warned that this year would continue to be challenging despite its like-for-likes sales rising 11.1% over Christmas.

Sales including VAT for the five weeks to December 31 rose by over 11% with the company reporting a record sales performance for the month. Online sales during the period rose 124% representing House of Fraser’s single largest store.

The bank first intimated it was likely to sell its stake more than a year ago.

Iceland Foods chief executive Malcolm Walker officially purchased the remaining 77% stake in the frozen food retailer he did not already own from Landsbanki and Glitnir on Friday.