Debenhams Stakeholder In Financial Foul-Up

4 February 2009

The High Street faces more trauma as an Icelandic company with a stake in a string of famous names has been forced to apply for bankruptcy protection.

Baugur owns a slice of Hamleys, House of Fraser, Debenhams, French Connection, Karen Millen and Goldsmiths among others. Confusingly, they also have a portion of frozen food giants Iceland. Baugur have made the move after the recently-nationalised Icelandic bank Landsbanki ended talks about restructuring.

Analysts are predicting a firesale of Baugur assets which could put retail giant Sir Phillip Green in the driving seat. He travelled to Iceland (the country not the shop) late last year to discuss buying up £1 billion worth of Baugur debt but the deal was not completed. Don’t be surprised if he’s readying his cheque book and licking the tip of his majestic quill as you’re reading this.

Thanks to Darren Wolstencroft and HotUKDeals.

TOPICS:   High Street News

9 comments

  • si
    with all the banking problems in iceland i guess the line at the till will be longer so i will use farm foods for a while.
  • Fred C.
    Icelandic bank Landsbanki is typical genre of a boring bank wishing a glamorous future (in UK we have Bardford and Bingley ..remember those boring out dated bowler hats>), so the shareholders invite a glamorous guy to be CEO with willingless to take unacceptable risks which those boring farts would not accept. So if you look at the retails shops in this portfolio : Hamleys, House of Fraser, Debenhams, French Connection, Karen Millen and Goldsmiths ... they are all high risk ones with little prospect for growth....as at the time when Baugur bought them they were already max'ed out in their earning potentials with the high street shopper heavily laden with credit card debt. This really goes to show where you don't have the brains and the experience you can make it up with inflated charisma and confidence to proclaim your are the expert in businesses and dismiss the boring calculating and considerate old farts.
  • Fred C.
    to "Si" , it is amazing for the same products how cheaply that Farm Foods are able to sell .
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