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| Version 0 | Version 1 |
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| Hamleys investor seeks protection | Hamleys investor seeks protection |
| (40 minutes later) | |
| The Icelandic retail investor Baugur, which owns stakes in Hamleys, House of Fraser and Iceland supermarkets, has asked for protection from creditors. | The Icelandic retail investor Baugur, which owns stakes in Hamleys, House of Fraser and Iceland supermarkets, has asked for protection from creditors. |
| Baugur took the action after Landsbanki decided to end discussions about a potential restructuring of the group. | Baugur took the action after Landsbanki decided to end discussions about a potential restructuring of the group. |
| The bank has also applied for Baugur's UK arm to be put into administration. | The bank has also applied for Baugur's UK arm to be put into administration. |
| It means that large stakes in some of Britain's best-known retailers may be sold, although many of them have said they are still trading as usual. | It means that large stakes in some of Britain's best-known retailers may be sold, although many of them have said they are still trading as usual. |
| Hamleys, in which Baugur owns a majority stake, has said that the application for court protection will have no direct impact on its business. | Hamleys, in which Baugur owns a majority stake, has said that the application for court protection will have no direct impact on its business. |
| "Hamleys continues to operate successfully as a self-funded stand alone business with no shareholder funding requirements for either short-term operations or long-term development," the toy retailer said in a statement. | "Hamleys continues to operate successfully as a self-funded stand alone business with no shareholder funding requirements for either short-term operations or long-term development," the toy retailer said in a statement. |
| Minority shareholder | Minority shareholder |
| Others have stressed that Baugur is a minority shareholder. | Others have stressed that Baugur is a minority shareholder. |
| BAUGUR'S PORTFOLIO House of FraserIcelandHamleysGoldsmithsMappin & WebbWatches of SwitzerlandWyevale Garden CentresWhistlesIllum (Denmark)Magasin du Nord (Denmark)Souk (Sweden)All SaintsJane NormanMosaic FashionsKaren MillenCoastOasisNine WestPied a TerreDay Birger et Mikkelsen (Denmark) | BAUGUR'S PORTFOLIO House of FraserIcelandHamleysGoldsmithsMappin & WebbWatches of SwitzerlandWyevale Garden CentresWhistlesIllum (Denmark)Magasin du Nord (Denmark)Souk (Sweden)All SaintsJane NormanMosaic FashionsKaren MillenCoastOasisNine WestPied a TerreDay Birger et Mikkelsen (Denmark) |
| "During these difficult times, it is important to clarify the independence of House of Fraser and to emphasise that Baugur is a minority shareholder and has no impact on the strength of the business, or its day-to-day operations," House of Fraser said in a statement. | "During these difficult times, it is important to clarify the independence of House of Fraser and to emphasise that Baugur is a minority shareholder and has no impact on the strength of the business, or its day-to-day operations," House of Fraser said in a statement. |
| And another fashion retailer with a Baugur stake concurred. | And another fashion retailer with a Baugur stake concurred. |
| "The Board of Mosaic Fashions wishes to make it clear that the news of Baugur filing for a moratorium, will in no way affect the future strength of the group or the operations of the business," the company said in a statement. | "The Board of Mosaic Fashions wishes to make it clear that the news of Baugur filing for a moratorium, will in no way affect the future strength of the group or the operations of the business," the company said in a statement. |
| Three weeks grace | Three weeks grace |
| Baugur has applied to the District Court in Reykjavik to enter a moratorium process, which allows it to stop paying creditors for a three week period. | Baugur has applied to the District Court in Reykjavik to enter a moratorium process, which allows it to stop paying creditors for a three week period. |
| Baugur's statement said the moratorium application involved "Baugur Group and a number of its wholly owned subsidiaries". | Baugur's statement said the moratorium application involved "Baugur Group and a number of its wholly owned subsidiaries". |
| "This action has been taken in order to protect the Group's assets as well as the interests of all creditors," it added. | "This action has been taken in order to protect the Group's assets as well as the interests of all creditors," it added. |
| If the court grants a moratorium, it will mean that the company gets an initial period of three weeks of protection from creditors, which can be extended by the court for up to six months. | If the court grants a moratorium, it will mean that the company gets an initial period of three weeks of protection from creditors, which can be extended by the court for up to six months. |
| A supervisor would be appointed by the court who is supposed to negotiate with creditors. | A supervisor would be appointed by the court who is supposed to negotiate with creditors. |
| In the UK, Landsbanki has applied for Baugur's subsidiary BG Holdings, which holds its stakes in British retailers, to be put into administration. | In the UK, Landsbanki has applied for Baugur's subsidiary BG Holdings, which holds its stakes in British retailers, to be put into administration. |
| "This is a kick in the balls from Landsbanki and the result will be that the Brits will get some of the best companies owned by Icelanders at a very cheap price," Baugur boss Jon Asgeir Johannesson was quoted as saying by the website visir.is. | "This is a kick in the balls from Landsbanki and the result will be that the Brits will get some of the best companies owned by Icelanders at a very cheap price," Baugur boss Jon Asgeir Johannesson was quoted as saying by the website visir.is. |
| Widespread holdings | Widespread holdings |
| Baugur has extensive holdings in the UK retail sector. | Baugur has extensive holdings in the UK retail sector. |
| Its holdings outside the UK include stakes in the Danish department stores Illum and Magasin du Nord; Souk in Sweden; and 8.6% of the Saks department store chain in the US. | Its holdings outside the UK include stakes in the Danish department stores Illum and Magasin du Nord; Souk in Sweden; and 8.6% of the Saks department store chain in the US. |
| The company has been hit by the drying up of credit caused by the collapse of Iceland's banking sector, which has affected its ability to borrow money. | The company has been hit by the drying up of credit caused by the collapse of Iceland's banking sector, which has affected its ability to borrow money. |
| Some of its shops have been hit in recent months by withdrawal of cover by credit insurers. | Some of its shops have been hit in recent months by withdrawal of cover by credit insurers. |
| Credit insurance is taken out by suppliers, especially to the retail sector, to insure against non-payment by the stores they are supplying. | Credit insurance is taken out by suppliers, especially to the retail sector, to insure against non-payment by the stores they are supplying. |
| If suppliers are unable to take out such insurance, they find it even more difficult than usual to take out loans from banks. | If suppliers are unable to take out such insurance, they find it even more difficult than usual to take out loans from banks. |
| But one credit insurer has predicted that the retailers will be able to continue trading, despite Baugur's protection from creditors. | But one credit insurer has predicted that the retailers will be able to continue trading, despite Baugur's protection from creditors. |
| A spokesperson for the credit insurer Atradius said: "[We] remain supportive of the viable businesses trading within it, notably some of the well-known names on the British High Street." | |
| "We do not foresee that Baugur's shareholding will negatively impact the ongoing trade of these businesses and anticipate the transfer of shares in an orderly fashion." | "We do not foresee that Baugur's shareholding will negatively impact the ongoing trade of these businesses and anticipate the transfer of shares in an orderly fashion." |