Sigurdsson told Retail Week that Baugur was focusing on helping its brands trade through Christmas, while the Icelandic authorities restructure the country’s beleaguered banking system.
“The stores are open in the morning and close in the evening; that is the most important thing happening in our business,” he said.
He added that while the brands are “strong and able to trade independently” of Baugur, the investor has “no intention” of making any changes to its portfolio. However, he added: “It is too early to see.”
“The brands are great and their future prospects are very good. We are positive people. Everyone is focused on Christmas. We will see what is required then.”
He added that the frenzy of speculation surrounding the future of Baugur’s£1 billion to£2 billion debt last month was “clearly difficult” for management and staff.
“We were doing our best to keep everyone up to speed. It was chaotic at first, now there is a calming down.”
Baugur’s decision to fly to Reykjavik with Sir Philip Green in the aftermath of the Icelandic collapse to attempt to sell its debt was done with the future of the UK high street in mind, he said. “The whole uncertainty and impact that Iceland was having at the time was having a negative impact on the businesses and potentially on the UK high street in the worst way. He contacted us to see what he could do.”
Sigurdsson said he did not believe that “any conversations” about acquiring Baugur’s debt will be successful “for the time-being” while the banking system is restructured, which could “take a while”.
He also defended the way in which Baugur has structured its deals, saying its leverage levels were “prudent” in comparison with others happening at the time.
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