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Baugur chain bosses look at buyout opportunities

The management teams of several Baugur-backed businesses are understood to be looking at buying back their chains.

Jane Norman and Whistles are thought to be among the businesses that are trawling the market for a possible buyer following the collapse of the Icelandic banking market last week.

Mosaic Fashions chief executive took steps to reassure the market that the business, which includes Oasis, Karen Millen and Warehouse, was sound. He told Drapers: "The business has got sufficient funding in place. We are able to pay our bills as they fall due in the medium term. What we need to do at the moment is to secure long-term funding in order to secure the business going forwards and we are prepared to deal with all parties to protect the future of our brands and employees."

For more on the Baugur crisis see tomorrow's issue of Drapers magazine.

Readers' comments (6)

  • What is happening to Bauger is a long overdue comeuppance.
    Their attitude "we own the high street so what we say goes" attitude is hubris personified. Their arrogant comments in the press have been hard to believe over the years. Many people in the rag trade are overjoyed, believe me.

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  • OMG..Someone else feels the same...I thought I was a lone voice.

    The bit that digs at me is P Green can snap it up for a song, cherry pick the bits that will help him control the High St/Shopping Centres and then pay no UK tax at all on the profits.....,.yet UK Govt giving 100 million of OUR taxes to Landsbanki so they can use their overdrafts again. errr...borrow more.

    If Bauger execs were now flying Easyjet to their meetings, flogged a mansion or boat and had put their own wealth into the businesses ....even just short term....then I would believe they truly cared.

    G Brown is now going to show his total ignorance of business....yeah... save the retail jobs but many are 4 hr contract, low wage. None of these businesses make anything at all in UK so no benefit to manufacturing.
    How many employees of Bauger based companies earn over 30k pa? H/O staff only.

    The landlords that benefit from the high rents they pay are running their own pyramid schemes....the next domino.

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  • There is no way Phillip Green should be able to buy the Baugur group. It would be a shame to have one man own the high street in the UK. He is a cost cutting, cheap, non - creative thinking individual. He does not pay UK taxes, and we should not support him. Fight back. I hope each brand in question gets funding on their own and blocks this.

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    QUOTE''Without citing its sources, the newspaper said Britain might seek to seize and sell on Landsbanki's assets to cover money deposited by its local authorities with Icelandic banks and now in the hands of the Icelandic government, which has nationalised its major banks in the global financial crisis'' UNQUOTE.

    The administrators are on standby. A the shops and jobs...or get some £££ for the councils to pay the staff ???? Let PG take it all over, create a fashion Tescopoly so the councils get some of their working capital back in hand.......which shouldn't have been on deposit in Iceland anyway.

    Iceland has had loads of negative press over the past 6 months.

    One comment was that looking into their finances and web of companies was like looking into a bowl of spaghetti.

    Wot a messss.

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  • TIMES ONLINE QUOTE' 'The Times said billionaire retailer Philip Green had asked the government to support his attempts to take on Baugur's debts, and thereby gain effective control of its investments.

    The newspaper said Green and rival bidders, which it said included private equity firms Alchemy, Permira and TPG, feared the International Monetary Fund could try to claw back businesses sold by the Icelandic government if the north Atlantic island nation turned to it for help.

    The Times also said that Mosaic Fashions, one of Baugur's investments, was talking to numerous parties about a deal to secure long-term financing. UNQUOTE.
    Mosaic has debt not far off its T/O. Not a good position to be in at the beginning of a slump (recession is too light a word for what lies ahead).

    So looks like the IMF hold all the cards right case Iceland goes bankrupt.

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  • Hemscott unravels the Bauger/Unity etc web........a complicated read.

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