Baugur-owned chains may be bought by Icelandic government
The Financial Times in the UK has reported that the Icelandic government would take stakes in some UK retailers like House of Fraser and Hamleys under plans being drawn up as part of the country's reform of its collapsed financial and corporate system. The Baugur-owned chains would be partly owned by the Icelandic government and creditors to its nationalised banks if a debt-for-equity swap between those banks and Baugur comes to fruition. Iceland is not likely to sell Baugur's assets because the government fears that it may not get a good price for them in the current economic climate.
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