Baugurgroup, fashion, uk, ict, emerce, ecomerce, clothing

Baugur may sell retail chain

Baugur is considering selling a number of its retail interests over the summer as it looks to realise value from its British shopping spree. The group has never sold any of its UK retail chains in the four years it has been an active investor in the sector.

To date, the company has made money by refinancing its operations. However, Gunnar Sigurdsson, managing director of Baugur's retail division, said that the group could start to offload assets in the summer. "Perhaps in the months to come we will be in a position to do something.

We are constantly evaluating our portfolio and improving value how we can," he said. Last week, Baugur filed an £850m indicative offer to buy back the Mosaic conglomerate - which includes the Oasis and Warehouse chains - that it floated on the Icelandic Stock Exchange under two years ago.

www.baugur.com
8 May 2007

Baugur founder guilty of manipulating books

Jon Asgeir Johannesson, the founding chief executive of acquisitive Icelandic investment group Baugur, has been found guilty of false accounting by an Icelandic court. He was accused of using a credit invoice to falsely inflate Baugur's accounts and was sentenced to a three-months suspended prison sentence, which will be appealed by his lawyers. According to a spokesman for the group – which owns a number of British retailers including Karen Millen, Oasis and House of Fraser – Baugur believes in Johannesson's innocence and will continue to support him.

The chief executive was initially charged with 40 offences, but in the past five years has been acquitted or found not guilty of all by one of them. He claimed the investigation into the group's financial practices was a political move by the Icelandic government, which was denied. Meanwhile, Johannesson and Baugur intend for business to go on as usual.

www.baugurgroup.com
7 May 2007

Baugur investments boosted by speculation

Shares in Woolworths and Moss Bros lifted as the market looked forward to Baugur’s much anticipated restructuring of its key investments in the New Year. The acquisitive Icelandic investment group controls 10 percent of the struggling Woolworths and is expected to demand a restructuring after the company issued a second profits warning before Christmas. An announcement of a possible takeover or breakup is expected to take place during Woolworth’s trading update in January, reports the FT. Share in Woolworths rose 2 percent as a result.

Meanwhile, menswear chain Moss Bros, saw its shares rise 16 percent on speculation that Baugur would make an estimated £80 million offer for the company. Moss Bros declined to comment. Baugur could not be reached for comment. There has also been increased speculation that the chain might be a target for private equity group Dawnay Day, which recently took over fashion chain Austin Reed.