Former Baugur executive chairman Jon Asgeir Johannesson is plotting to launch a low-cost supermarket called Best Price in the UK.

Johannesson, who has kept a low profile since the collapse of retail group Baugur, has earmarked a site in south London and is understood to be close to opening the first shop.

According to the Daily Telegraph, the shop will sell cheap food and mimic the formula of his Bonus chain in Iceland.

According to documents filed at Companies House, Bonus Foods changed its name to Best Price Foods on December 16 last year. Best Price Foods is registered at 413 Oxford Street, the location of Watches of Switzerland, which used to be owned by Baugur. One of its directors is listed as Hordur Logi Hafsteinsson, who used to work at Baugur.

One insider told the paper: “He is basically doing a version of Kwik Save.”

It is understood most of the products are being sourced from Booker, the cash and carry wholesaler which Baugur used to have a stake in.

Baugur arrived in the UK in 2001 and bought up much of the high street including Hamleys, Oasis, Karen Millen, Iceland, and House of Fraser. It filed for bankruptcy in March 2009 with debts of £1bn.