All Saints chairman Kevin Stanford has left the high street clothing chain he founded in 1994 after a dispute with recent shareholder Lion Capital.
He left the business two weeks ago, although it is not clear whether he was asked to leave or went of his own volition.
Stanford has hit out at private equity owner Lion Capital, a spokesperson for the retail magnate saying: "Kevin has legitimate concerns about the way that All Saints has been managed since the involvement of Lion Capital.”
All Saints has seen controversy since Lion and Goode Partners put together a £105m rescue package to keep the retailer's head above water.
Stanford and Stephen Craig, then All Saints’ respective chairman and chief executive, bumped heads over who was in charge, leading to Craig’s resignation and chief financial officer Peter Wood stepping in on an interim basis.
Now it is believed that Stanford is unhappy with Lion's valuation of his minority stake in All Saints, the private equity firm valuing the business just above its £105m interest, leaving little in equity value for the company's founder.
All Saints was put up for sale last year by liquidators breaking up Icelandic banks Kaupthing and Glitnir, which bought up much of the UK's high street including House of Fraser, frozen food chain Iceland and Karen Millen owner Aurora prior to the crash.
Stanford, who helped build Karen Millen with his ex-wife of the same name, lost millions as Iceland's banks became insolvent since he was a major shareholder in Kaupthing.