Baugur offloads Criminal

Baugur is selling its streetwear brand Criminal two years after investing in the label. It is unclear who is buying the business, but House of Fraser, in which Baugur also has a stake, emerged as the most likely candidate as Drapers went to press.

Market sources confirmed that Criminal was being bought by a retailer and that the wholesale division was likely to be axed as a result. Speculation suggests Criminal's four stores, in London's Covent Garden, Notting Hill and Carnaby Street and Bournemouth in Dorset,  may also shut. The buyer is expected to treat Criminal as an own-label offer within its stores.

Baugur's acquisition of Criminal in 2005 was the Icelandic investor's first small business investment. At the time Baugur chairman Jón Ásgeir Jóhannesson said he planned to invest in up-and-coming entrepreneurs such as Criminal founder Reza Deghani-Wright. But in recent months Deghani-Wright has been less involved with the business due to a serious illness.

Criminal Clothing was foun-ded six years ago and had more than 250 accounts in the UK and Republic of Ireland when it was bought by Baugur. However, wholesale orders are believed to have fallen back this year.

Baugur declined to comment. Criminal was unavailable for com-ment as Drapers went to press.