Baugur chairman Jon Asgeir Johannesson has joined the board of frozen food specialist Iceland as chairman.

Iceland has been the jewel in the crown of Baugur’s retail investment portfolio which includes House of Fraser, Mosaic and Hamleys. In the year to October, like-for-like sales were running at 14 per cent at the retailer.

Baugur acquired its stake in Iceland in 2004. It has 660 stores in the UK and Ireland and is run by founder and chief executive Malcolm Walker.

Johannesson said: “Iceland is a robust company and has great potential for further success. I look forward to take on this assignment and participate in further development.”

As a result of the appointment, Johannesson has left the boards of Danish department stores Magasin du Nord and Illum. Baugur chief executive Gunnar Sigurdsson has replaced Johannesson as chairman of both companies.

Johannesson still sits on the board of Mosaic and is a board director of House of Fraser.

It follows weeks of uncertainty over the future of Baugur-backed brands after the collapse of the Icelandic nation's banking system.