All Saints has agreed a loan with its Icelandic backers to fund further expansion, according to reports.

The business, which has opened a string of stores in the US, is understood to be using the cash injection to expand further in the country, where it has also been linked to a potential flotation.

According to the Financial Mail on Sunday, the agreement could give nationalised Icelandic banks Glitnir and Kaupthing the opportunity to subscribe for shares worth up to 15% of the business.

Chief executive Stephen Craig told the newspaper that he did not expect any of the special conditions, such as the extending of the loan facility beyond 12 months, to be triggered.