Baugur files for bankruptcy
Baugur, which holds stakes in British high street retailers House of Fraser, French Connection and Debenhams, has applied for bankruptcy protection.
Baugur has applied to a district court in Reykjavik to enter into a “moratorium process”, which is similar to Chapter 11 bankruptcy procedures in the US. The group said it had taken the step to protect its assets as well as the interests of creditors.
The group has an initial three weeks to find a solution which could include a fire-sale of its UK retail assets.
“This morning Baugur Group and a number of its wholly owned subsidiaries have applied to the District Court in Reykjavik to enter into the moratorium process, the company said in a statement.
“This action has been taken in order to protect the group’s assets as well as the interests of all creditors,” it said, adding it had made the move after restructuring efforts with its banks collapsed.
