The news comes four weeks after the Icelandic investor’s UK arm was placed into administration, as exclusively revealed by Retail Week.
The board of Baugur is due to meet at 5pm today to discuss their options. The investor is understood to be disappointed by the court's decision after putting forward what it believes were viable plans for its creditors.
It is unclear what the Icelandic court’s rejection of Baugur’s application to extend the protection means for retailers in which it has shareholdings, including All Saints, Jane Norman and Whistles.
It is likely that its creditors will take control of its remaining assets.
The stakes owned by Baugur’s UK arm BG Holding were placed into administration in February after lender nationalised Icelandic bank Landsbanki pulled the plug on further funding. The assets affected included Baugur’s stakes in toys retailer Hamleys, jewellery group Aurum, department store chain House of Fraser and food retailer Iceland.
At the start of this month, the Baugur-backed fashion group Mosaic went into pre-pack administration.