Glitnir is expected to appoint Deloitte as receivers to part of the Baugur group, according to reports. The move follows the decision by fellow Icelandic bank Landsbanki to file for the administration of Baugur’s stakes in House of Fraser, Hamleys, Iceland and Aurum as revealed by Retail Week on Wednesday.
The High Court is expected to decide today whether to support Landsbanki in its petition. If allowed, PricewaterhouseCoopers will be appointed as administrators to BG Holdings, the Baugur-owned subsidiary that holds the shares.
Baugur has appealed to the Icelandic courts to protect itself from its creditors.
Yesterday Landsbanki seized control of Baugur’s shares in Iceland (14 per cent stake), House of Fraser (35 per cent stake), Aurum (38 per cent stake) and Hamley’s (64 per cent stake).
The third in the trio of nationalised Icelandic banks, Kaupthing, is the biggest creditor to Mosaic. The fashion group, in which Baugur has a 49 per cent stake, has£400m worth of debts with Kaputhing. Kaupthing has a 20 per cent stake in the group.
Meanwhile, it is understood that Arcadia chief Sir Philip Green and members of the Saudi Royal Family have discussed a rescue deal for the Hamley’s toy chain this week. Green denied to TheTimes that he had been in talks to buy the business.
Dragons’ Den entrepreneur Theo Paphitis is believed to have held discussions with Hamley’s management in December.
However, Landsbanki is understood to want to hold the stake for up to five years.