Icelandic holding company Baugur told just-food today (13 October) that the collapse of Iceland’s banking system would not have an impact on the group’s UK retail investments.
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The Icelandic government has frozen the assets of the country’s three largest banks – Kaupthing Bank, Landsbanki Island and Glitnir Bank – in an attempt to stem the financial crisis.
Should any of the Icelandic banks facing financial meltdown be forced to sell overseas assets, such a decision would not impact Baugur’s investments, the company said.
“It won’t effect Baugur’s UK investments because the majority of its funding comes from international banks,” a spokesperson for the group commented.
However, UK reports have suggested that retail tycoon Sir Philip Green could takeover a number of Baugur-owned businesses. The owner of Topshop and BHS may invest up to GBP2bn (US$3.4bn) in debt held by Baugur, the BBC has reported.
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By GlobalData“The Baugur group has some borrowings with these banks that have now been taken over, and therefore there was a discussion about my company acquiring the debt in these different banks,” Sir Philip told the BBC.
Baugur owns a clutch of UK High Street brands, including frozen supermarket group Iceland.
