BG Holding, the U.K. subsidiary of Iceland’s debt-strapped Baugur Group, was placed in administration on Friday by a British court.
Landsbanki Island HF petitioned PriceWaterhouseCoopers to take charge of BG Holding. Baugur reportedly owes GBR 1 billion (USD 1.48 billion, EUR 1.14 billion) to Landsbanki, one of Iceland’s three big nationalized banks.
BG Holding has a 13.7 percent share of Iceland Foods Group Ltd., which produces numerous frozen seafood products for retail, including breaded cod and saithe fillets and portions, cod cakes, fish fingers, shrimp, langoustines and scallops.
BG Holdings also has a 34.9 percent share of Highland Group Holdings Ltd., which owns House of Fraser stores; 37.75 percent of jeweler Aurum Group; 63.7 percent of Corporal Ltd., which owns toy retailer Hamleys; and 8.5 percent of high-end U.S. retailer Saks Fifth Avenue.
“We believe that the appointment of administrators over BG Holding is the best way of ensuring stability and continuity for the U.K. companies in which it has shareholdings,” said Landsbanki in a prepared statement.
