All Saints chief executive Stephen Craig is believed to be in talks with new investors to secure a sale of the young fashion business, which has been given a deadline to secure its future by its main backers.

Craig told the Daily Mail that he was “even more confident” of substituting US private equity business MSD after it pulled out of sale talks as part of a consortium with fellow US investor Goode Partners.

Craig is believed to want to line up US private equity houses Sun Capital and Lion Capital for the deal. Lion Capital owns lingerie chain La Senza, backs American Apparel and has previously held a stake in luxury footwear label Jimmy Choo.

Meanwhile, it is understood that Craig has been given a deadline of tonight to finalise any deal.

All Saints’ main lender, Lloyds Banking Group, has asked KPMG to be on standby to initiate administration proceedings as early as tomorrow, it has been reported.

Talks are reported to be continuing today and it is thought that the deadline could be extended.

The company appointed Ernst & Young to find buyers of the stakes owned by nationalised Icelandic banks Glitnir and Kaupthing.

Since then, a number of deals have fallen through.

It is thought that Goode Partners could share control with majority shareholder Kevin Stanford.