Icelandic retailer Baugur has issued a profits warning and announced that the company CEO Tryggvi Jonsson is to step down on 1 November.

The company has attributed the poor performance to the costly closing down of unprofitable stores and restructuring together with a revaluation of supplies.

Jonsson is likely to be replaced by Baugur’s owner and chairman Jon Asgeir Johannesson.

The company has said that Jonsson’s decision to step down has nothing to do with the fact that Baugur is currently under investigation for fraud. Baugur has denied the fraud allegations.

Last week, Baugur acquired a 15% stake in the troubled British frozen foods and wholesale company Big Food Group, the parent of high-street frozen food chain Iceland.

Baugur also owns the Miss Selfridge and Debenhams brands in Iceland and Sweden.