Baugur-controlled US retail group Bonus Stores has filed for Chapter 11 bankruptcy protection and is raising funds by selling 239 outlets.
The management of the retailer, which is 65 per cent owned by Baugur, hopes to stave off creditors with an auction in September, to leave it with about 100 outlets.
A Baugur spokesman said: 'The board of Bonus Stores decided to file for Chapter 11. They've had aspirations, but are just spread too thinly.'
Prior to the filing last Friday, Baugur released a statement saying it intends to withdraw from the US and concentrate on the UK, Iceland and Sweden. It read: 'Baugur Group has adopted the strategy of withdrawing from operations in the US and concentrating instead on further growth in the Nordic countries and the UK, where the company has been investing successfully in recent months.'
The statement refers to its stocks in the UK, including Big Food Group, Somerfield and House of Fraser. Baugur has also agreed a deal backing management in a£59 million buy-out of Hamleys.
Bonus Stores, which operates chains under Bill's Dollar Stores and Bonus Dollar Stores, will auction the shops on September 15. The disposals will leave the business, which operated in 12 states, with a presence in Mississippi, Alabama and Louisiana.
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