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Baugur passes reins to the administrator
6 Feb 2009Any last hope Jon Asgeir Johannesson could retain some control over his retail empire died today when Baugur was formally placed into administration.
This means that PricewaterhouseCoopers and Icelandic bank Landsbanki, Baugur's biggest creditor, now oversee stakes in large chunks of the UK High Street.
Baugur ditched plans to oppose the application to put it into administration in the UK, saying it wanted to "minimise any further jeopardy" to its portfolio.
It has 14 per cent of Iceland, 35 per cent of House of Fraser, and most of Hamleys, among other investments.
PwC must now decide which stakes to sell as it seeks to pay down Baugur debts of £1billion.
There is political pressure from Iceland not to sell off the investments on the cheap. Baugur said it remains "disappointed" by Landsbanki's move.
Whistles today clarified its relationship with Baugur, saying it owns only 20 per cent of the women's clothes store, less than has been reported.
Reader views (1)
He must have known this was coming, he's been running rings around Icelandic governments for the last 10 years, now it's payback time.
- Chris, Woking. UK, 06/02/2009 17:43
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