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Baugur assessing restructuring options

Baugur is in talks with BDO Stoy Hayward to advise it on restructuring options for the company which could include administration.

According to The Daily Telegraph, Baugur and BDO Stoy Hayward are assessing restructuring options including the possibility of placing the UK holding company into administration which the newspaper said could help speed up the rescue and refinancing of some of Baugur's retail interests. Baugur has stakes in Mosaic Fashions which owns Oasis and Karen Millen as well as stakes in Jane Norman and House of Fraser.

A source close to Baugur stressed that a restructuring or administration would have no short term impact on the retail businesses which are part of the Baugur portfolio.

At the weekend, Baugur chairman Jon Asgeir Johannesson said a deal with Sir Philip Green to buy the debt from failed Icelandic banks and the Icelandic government was essential to prevent Baugur's investments from falling "one after another".

Meanwhile The Financial Times reported that Sir Philip Green was facing competition to buy Baugur's debt as private equity firms and banks were also assessing prospects for a deal. However the newspaper said that Green remained the most likely successful bidder because of his ability to move quickly.

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Readers' comments (1)

  • It was clear to me from The Times mapping of the Iceland/Baugur/UK interdependences in the paper of Tuesday 7th October that the repercussions for the UK High Street would be significant. As we move into this phase with Sir Phillip Green and private equity houses surrounding the retail wagon train it is possible that one retailer after another will be picked off one by one in the fight for interests in the companies involved.
    I think it is a shame that Sir Phillip, for all his retail guile and dominance of the High Street, and the faceless money men of private equity houses, should be the ones who are in contention for 'rescuing' the situation. It's the same old UK High Street dominance.
    Lord Kirkham (in RW of last week) compelled everybody to 'think outside the box'. He is absolutely right. There are other potential solutions that could allow for new retail synergies and a spicing up of the UK High Street .... developing the best of what's there already and taking it to the next level.
    Whatever happens, it will be a tragedy if the efforts of so many good retailers over many years are sacrificed when all they have done is concentrated on delivering what the customers really want and delivered it.
    Geoff Smith

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