The switch of domicile will allow Baugur’s executive chairman Jón sgeir Jóhannesson to remain at the helm following his conviction in Iceland last month of bookkeeping offences. He is likely to be banned from being a director in his home country.
Baugur’s relocation will also reflect its asset base, most of which is in this country and help distance the investment group from wider worries about Iceland’s economy.
Relocation to the UK would mean that Baugur will report in sterling and conform to this country’s tougher disclosure rules.
As part of the changes, Baugur is expected today to switch its Icelandic retail interests, including the Bonus supermarket chain, into the Jóhannesson family’s holding company.
Baugur’s UK interests include department store business House of Fraser, fashion group Mosaic and specialist food retailer Julian Graves. It has stakes in Debenhams, French Connection, Moss Bros and Woolworths. Baugur also has a stake in US department store Saks.
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