As Retail Week went to press, Blue was understood to be in discussions about his responsibilities.
The former Merrill Lynch banker and private equity expert joined Baugur in the key role in July last year, when Jón sgeir Jóhannesson stepped up to become executive chairman. Blue was previously known for having worked on the IPO of controversial tycoon Mike Ashley’s Sports Direct.
His appointment was part of Baugur’s restructuring as it attempted to become the biggest investment company in the retail sector within five years, using a£600 million war chest.
Soon after, Baugur snapped up stakes in Debenhams and declared an interest in making a joint takeover bid for Saks. But the credit crunch forced it to put its ambitions on the back-burner and, industry sources say, prompted the proposed changes to Blue’s remit.
A Baugur spokesman confirmed that Blue’s role will change, but declined to elaborate. Speculation that he would leave was dismissed and a source close to Baugur said his remit was likely to be widened.
It is understood a shift in Blue’s responsibilities was being mulled before top Icelandic banks, which have linked with Baugur on many retail deals, were thrown into crisis this week.
No comments yet