Baugur sells MKOne chain to restructuring specialist

Source: Retail Digital

Date :5/2/2008 7:06:13 AM

MK One, the Baugur-owned fashion chain has been sold to Hilco UK, the retail restructuring specialist in a deal which suppliers fear will lead to a break-up of the loss-making business.

After a fortnight of speculation over the future of the business, which runs 172 stores across the UK, the Icelandic investment group revealed Friday that it had agreed a deal with Hilco for an undisclosed sum.

Portfolio

Baugur said the fashion chain "is being sold as a going concern".

"MK One no longer fitted in the portfolio and we're pleased to announce a sale," Gunnar Sigurdsson, Baugur chief executive said.

Suppliers

The chain has been hit hard by the downturn in the retail markets, reporting a pre-tax loss of £16.7 million in the year to January 2007, the last for which accounts are available.

It has hit the headlines in recent weeks over its highly controversial decision to put a stop on cheques it had issued to pay suppliers – a subject about which the company remains tight-lipped.

May 02, 2008