A DEAL for entrepreneur David Moulsdale to buy the debt of the Optical Express chain he founded has still not been completed.

It is understood negotiations are ongoing between Mr Moulsdale and his representatives and Royal Bank of Scotland over the terms of the transaction.

It has emerged in recent days the chairman of the Glasgow business – which has 93 stores and 54 consultation centres – was stepping in with a rescue package after RBS refused to extend the £30 million facility it provided.

There had been suggestions the agreement would be formally completed on Monday.

However, confirmation of that failed to materialise and both parties remained tight-lipped when asked about the progress in the deal. Neither RBS nor Optical Express offered any comment.

It is not known how Mr Moulsdale, who founded the group in 1991, is funding the transaction.

Mr Moulsdale was said to have launched the deal after Optical Express asked for additional funds from the bank to help it pay its 1800 staff, including more than 800 in Scotland.

A spokesman for Mr Moulsdale indicated it was a multi-million-pound investment which would protect jobs and position Optical Express for growth unencumbered by any debt. Some sources had suggested RBS were willing to accept just 20p in the pound to get the debt issue resolved.

Like many other high street businesses Optical Express has faced growing competition from online retailers in recent years.

Meanwhile declining consumer confidence has meant expensive treatments, such as laser eye surgery and cosmetic dentistry, have been less popular while cash conscious customers have also swapped designer glasses for more affordable frames. Those tough trading conditions saw a subsidiary called Optical Express (Southern) put into administration in October with the loss of 40 stores.

Optical Express, which has its headquarters in Cumbernauld, also operates overseas in the US, Croatia, Germany, France and The Netherlands. Former Scottish First Minister Lord McConnell of Glenscorrodale and PwC accountant Frank Blin are both on the board at Optical Express.