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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