Iceland chief executive Malcom Walker has been given priority to make an offer to buy back the frozen food business he formed more than 40 years ago.
An “exclusivity deal” has been signed by Walker and other senior managers who own 23 per cent of the business.
The agreement has been signed with the creditors of failed bank Landsbanki that took control of the chain in 2008, giving the management team the opportunity to buy the company ahead of any other possible bids.
Reports have said the team could offer around £1.5bn for the retailer.
Walker said: “I am delighted that the Icelandic banks have recognised the importance of management to the continuing success of the business, and have been supportive in giving us the exclusive right to pursue negotiations with them.
"I have every hope that we will be able to bring these to a successful conclusion within the coming weeks.
“This gives us a fantastic opportunity to achieve a deal that will be in the best long term interests of Iceland Foods, our 22,000 staff and the five million customers who shop with us each week.”
Iceland has gone from strength to strength in the economic downturn as shoppers have tried to find the best value for money.
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