Following in the footsteps of its Viking forefathers, Baugur has been successful in changing the fortunes of a whole country – albeit within the retail sector.

Both sets of audacious Icelandics came, saw and conquered in this country. However, the plunder that first attracted both – for one, largely undefended monastic funds and, for the other, easily accessible credit funds – have both since dried up. And yet, where other private equity investors’ interest in retail has cooled, Baugur continues to be acquisitive.

It has set its teeth into a flailing Moss Bros and is champing at the bit for a chunk of Debenhams once the Takeover Panel’s handcuffs come off next month, while, further afield, Saks seems set to fall into Baugur hands. But, as the Bank of England said today it needs to inject£150 million into global money markets to ease the strain, there are rumblings that there is something rotten in the state of Baugur.

Analysts and observers alike are beginning to question Baugur’s ability to withstand the credit crisis. Suggestions are being thrown around that Baugur has over-stretched itself and is set for a fall.

Much has been made of the fact that the tiny island of Iceland has churned out such a lot of wealth; so too have the easy links between Reykjavik and Moscow. Take from that what you will, but insiders also point to a canny and different way of investing in the sector.

As one financier said: “They are not under pressure. In every deal, the amount of equity they inject has been small. They are all being financed by rich private Icelandic investors and banks that are more sensible in backing Baugur than sub-prime mortgages.”

And, as the private equity boom cools, Baugur’s alternative role in private equity comes to the fore. Baugur would spurn its description as a private equity outfit. “Retail equity” may be more appropriate, as one Baugur honcho prefers.

Baugur is a long-term investor that serially stake-builds, taking advantage of low share prices – as in Moss Bros and Debenhams – rarely launching a full-scale bid without its band of retail entrepreneurs and contingent of banks.

In this way, Baugur differs from its ancestors. It came, saw, conquered and made friends both here and abroad. The legacy will be felt for much longer, no doubt.