The information memorandum for the sale of Landsbanki’s share of Iceland Frozen Foods is expected to go out within the next two weeks but upheavals in the financial markets threaten to derail some bids.

Up to 20 companies are expected to receive the information memorandum including the big four grocers.

City advisers to the Icelandic banks Landsbanki and Glitnir had planned to offer potential buyers read-made financing packages tailored to enable them to make bids, according to the Sunday Times. However, the debt market’s woes are thought to have scuppered that plan, leaving the management team in lead place to take full control of the chain.

Iceland’s management, led by chief executive Malcolm Walker, already own 23% of the business. Last year they offered to buy the remaining stake for £1bn but it was rejected.

Management are being advised by Rothschild.