Baugur has issued a statement denying it has appointed advisors and denying it plans to put its UK business into administration.
Baugur chief executive Gunnar Sigurdsson said: "Further to media speculation today, we would like to make clear that Baugur has not appointed any advisors. We continue to monitor the situation in Iceland, where possible maintain a dialogue with the banks and manage and plan our business accordingly. We have no plans to place our UK business into administration."
Baugur is understood to have held talks with BDO Stoy Hayward about restructuring options but has not appointed the firm in an official advisory capacity.
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