Baugur: Icelandic bluff

The bluffing game for Baugur has begun. The once aggressive Icelandic group is on the verge of losing control of its sprawling retail empire. After the failure of restructuring talks, the group has applied for court protection. One of its main lenders, the Icelandic Landsbanki, claims not to want a quick fire sale of Baugur’s assets, which include holdings in UK high street brands such as Hamley’s, House of Fraser and Karen Millen. But that’s difficult to believe. Baugur would like to keep goin...