Your browser is no longer supported. For the best experience of this website, please upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Baugur boss Johannesson avoids New York court case

Jon Asgeir Johannesson, the boss of defunct Icelandic investor Baugur, has avoided a court case in the US after a judge in New York threw out a legal case against the London-based investor which claimed he was involved in a $2bn (£1.2bn) fraud.

The court said that the case should not be tried in the US because most of the people involved are Icelandics and the case revolves around the collapse of the Icelandic banking system.

The lawsuit was brought by the nationalised Icelandic bank Glitnir which claimed that Johannesson recieved loans to finance Baugur’s retail investments before it collapsed in late 2008.

At its height, Baugur owned or had investments in large swathes of the high street including House of Fraser, Whistles, Jane Norman, Oasis, Warehouse, Karen Millen and Debenhams.

However it went bust in February 2009 after admitting it was overleveraged and following the collapse of the Icelandic banks in which Baugur held shares.

The lawsuit had alleged: “A cabal of businessmen, led by convicted white-collar criminal Jon Asgeir Johannesson, engaged in a sweeping conspiracy to wrest control of Iceland’s Glitnir Bank to fill their pockets and prop up their own failing companies.”

It is likely that Glitnir will continue its case in Reykjavik, according to the Telegraph.

Johannesson strongly denies all claims against him.

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.