Baugur has filed for bankruptcy protection
Retail group Baugur has confirmed that it has filed for protection from its creditors in the Icelandic equivalent of Chapter 11 bankruptcy. Retail Week reported that Landsbanki has pulled funding to the Icelandic group. It controls or owns stakes in many UK retailers including House of Fraser, Hamleys, Iceland, Mosaic and Mappin and Webb. Baugur said in a statement: "This morning Baugur Group and a number of its wholly owned subsidiaries including BG Holding ehf, have applied to the District Court in Reykjavik to enter into the moratorium process. This action has been taken in order to protect the group's assets as well as the interests of all creditors. The board of the company unanimously resolved to take this action following yesterday's decision by Landsbanki to discontinue discussions regarding a potential restructuring of the group."
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