Baugur has warned against a quick fire sale of its assets controlled by the Icelandic government, saying it would be “impossible” to achieve this close to Christmas.
In an interview with The Financial Times, Baugur chairman Jon Asgeir Johannesson said: “The Icelandic nation doesn’t need a fire sale of good assets for the time being.”
He added: “Trying to sell retail assets at this time five minutes to Christmas is like trying to sell a Christmas tree in July, it’s impossible.”
He defended Baugur’s strategy of acquiring businesses with highly leveraged buy-outs backed by Icelandic banks that highly leveraged their borrowings to companies such as Baugur.
Its portfolio includes fashion group Mosaic, House of Fraser, Iceland and Hamleys.
He said: “Leveraged buy-outs were not created in Iceland and we put a sensible leverage on our businesses and we leveraged our equity against that in the same way people were doing abroad.”
Last month, Baugur’s future was thrown into doubt after the Icelandic government took control of its£1 billion to£2 billion debt when it seized control of failed Icelandic banks Glitnir, Kaupthing and Landsbanki.
No comments yet