Iceland founder and former chief executive Malcolm Walker could face a probe by the Serious Fraud Office (SFO) into his controversial£13.5 million share sale at the end of 2000.
It is understood that the Department of Trade and Industry has referred the sale to the SFO following a two-year investigation.
Walker continues to deny doing anything wrong in selling his shares a month before Iceland - since renamed Big Food Group - issued a profit warning.
He was subsequently forced to resign from Iceland, but has since set up Cool Trader, another frozen food chain.
- Big Food Group is due to deliver a trading update to the City today.