Kaupthing Bank Luxembourg, a subsidiary of the Icelandic bank, is understood to have bought retail entrepreneur Kevin Stanford’s stake in Mulberry.

Mulberry issued a statement on the stock exchange yesterday saying Kaupthing Bank Luxembourg had taken a shareholding in the company.

The bank is thought to have bought Stanford’s 25.4 per cent stake, although the exact reason for the transfer of the shares is unclear.

Stanford, who owns the All Saints fashion chain, is thought to owe Kaupthing£250m, according to reports this morning.