Updated: Landsbanki’s petition to put Baugur subsidiary BG Holding into administration has been granted by the High Court of Justice.
Earlier today, Baugur said in a statement it had withdrawn its petition for the moratorium of subsidiary BG Holding in Reykjavik this morning.
BG Holding holds a 34.5% stake in House of Fraser as well as having shares in toy retailer Hamleys and jewellery retailers Goldsmiths and Mappin & Webb.
Landsbanki stressed that none of the trading companies in which BG Holding had a stake, was affected. It said they would remain under the control of their respective management teams.
Landsbanki’s Resolution Committee said in a statement: “We believe that the appointment of administrators over BG Holding is the best way of ensuring stability and continuity for the UK companies in which it has shareholdings. Our role is to maximise the long-term value of those assets and we will give our full support to the management teams of the operating companies concerned. As the bank’s interest is primarily in the UK assets of BG Holding, we do not intent to oppose Baugur Group’s request for a moratorium on its remaining businesses in Iceland.”
“Following the collapse of the Icelandic banks, it has been our priority to protect the portfolio of companies and ensure minimal disruption to the businesses, their employees and other stakeholders.”
Baugur chief executive Gunnar Sigurdsson
Baugur chief executive Gunnar Sigurdsson said: “Following the collapse of the Icelandic banks, it has been our priority to protect the portfolio of companies and ensure minimal disruption to the businesses, their employees and other stakeholders.”
“We are very disappointed with Landsbanki’s decision as we believe that we had sound restructuring proposals to maximise the recovery and value for all stakeholders of the group.”
Sigurdsson added: “In the interests of the portfolio companies, we have decided to not oppose the administration of BG Holding and will work with Landsbanki’s resolution committee and provide all possible support to the businesses. The portfolio contains strong brands and excellent management teams, which are well-positioned to build on their strengths over the coming years.”