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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.
A British court put BG Holdings in the hands of administrators PriceWaterhouseCoopers on Feb. 6. Landsbanki Island HF, one of the three big Icelandic banks nationalized in October and a major creditor of Baugur, had petitioned for administration.
BG Holding had stakes in several big-name British retailers, including 13.7 percent of Iceland Foods Group Ltd., 34.9 percent of Highland Group Holdings Ltd. which owns House of Fraser stores, 37.75 percent of jewelry company Aurum Group, and 63.7 percent of Corporal Ltd., which owns toy retailer Hamleys.
BG Holding also held 49 percent of Mosaic Fashion whose brands include Karen Millen, Principles, Oasis, Warehouse, Coast and the Shoe Studio. Mosaic was placed under a pre-pack administration earlier this month.
Deloitte, appointed as administrators of Mosaic Fashion, on March 2 said it had sold the UK business and assets of Warehouse, Oasis, Coast, Karen Millen, Anoushka G and the overseas shares of Karen Millen to Aurora Fashions, a new company jointly owned by Iceland's Kaupthing bank and the former management of Mosaic.
Deloitte said last week that it had sold the stock of Principles to British department store Debenhams, but 66 Principles shops were closed.
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http://baugur.com


Updated : 2021-05-08 10:36 GMT+08:00