Mr. Holland & Barrett, one of Britain’s largest health food retailers, plans to buy back part of its nearly £900 million debt to restore its financial stability.

Sky News has learned that the letter, a Russian-linked investment vehicle, on Tuesday notified Holland & Barrett’s creditors that it was offering to buy the chain’s outstanding loans.

The move is aimed at averting the prospect of the seller’s creditors seeking enforcement if it defaults on repayment obligations.

Holland & Barrett, which operates businesses from 800 stores in the UK and employs 8,000 people, was acquired by LetterOne in 2017.

While LetterOne itself has not been subject to sanctions in the wake of Russia’s invasion of Ukraine, some of the founders of the early investment group have been sanctioned by the UK and the European Union.

That has caused concern among some of Holland & Barrett’s creditors, which include HSBC.

The restructuring outlined on Tuesday consists of attractive offers in which the seller’s creditors can opt to participate.

One bank source familiar with the LetterOne proposal said it would be fixed at between 75% and 80% of the loan’s face value.

“In light of the concerns expressed by creditors about H&B’s performance, the sanctions landscape, the increasingly challenging business environment and, in addition, the significant operational and business changes H&B requires to complete its journey on a long-term basis; each creditor is invited to participate in the tender offer to provide them with the option of exiting the state in cash today rather than waiting until the maturity of the facilities,” said a letter sent by Barrett’s creditors to Holland.

LetterOna has been confirmed as a multibillion dollar investment firm by Russian-connected businessmen including Mikhail Fridman, one of BP’s former partners in their ill-fated joint venture on land.

In a statement released to Sky News, a spokesperson for Lettere said: “Lettere is supportive of the actions taken by H&B management to achieve the group’s long-term vision.”

“Lenders have expressed significant concerns over the situation.

“L1 is therefore providing a level playing field to give creditors the choice of whether to stay.”

“It’s time to focus on great business that provides vital services and improves the health and well-being of communities.”

In total, Holland & Barrett operates from 1,600 stores in 19 countries.

It was founded as a single store in 1870 in Bishop’s Stortford, and has been owned by several different parties, including the Carlyle firm.

Retail insiders say its recent marketing performance is “extremely challenging”.

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