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Fallen retailer Baugur filing for bankruptcy

Fallen retailer Baugur filing for bankruptcy

Baugur Group HF, the high-flying Icelandic retail group that crashed along with its nation's banks, said Wednesday it would file for bankruptcy after a court called time on its efforts to reorganize.
The announcement followed a ruling earlier in the day by the District Court in Reykjavik against extending the moratorium process, which protected Baugur from its creditors.
BG Holding EHF, Baugur's vehicle for its British holdings, is already in administration.
"We believe that the company fulfills all the conditions for the extension and that the restructuring plan was viable," said Kristin Johannesdottir, chairman of Baugur Group.
"However, following the ruling, we have no choice but to file for bankruptcy."
Baugur reportedly was saddled with $1.4 billion in debt.
The company had holdings in retailers in Britain, Scandinavia and the United States that employed 50,000 people, including an 8.6 percent stake in Saks Fifth Avenue in the United States.


Updated : 2021-09-22 02:01 GMT+08:00