Icelandic retail investor Baugur, which owns stakes in Coast, Oasis, Nine West, Hamleys, House of Fraser and Karen Millen, has applied for protection from creditors.
“This morning Baugur ... (has) applied to the District Court in Reykjavik to enter into the moratorium process. This action has been taken in order to protect the group's assets as well as the interests of all creditors,” it said in a statement.
“The board of the company unanimously resolved to take this action following yesterday's decision by Landsbanki to discontinue discussions regarding a potential restructuring of the group.”
Baugur's interests in the UK include fashion retailers Jane Norman, Whistles and a 49 per cent stake in Mosaic Fashions which operates in the Republic through the Oasis, Principles, Karen Millen, Warehouse and Coast outlets.
Baugur also owns stakes in House of Fraser and toy store Hamleys both of which have outlets in the Dundrum Town Centre, the French Connection Group, Debenhams and supermarket chain Iceland.
Baugur, hit by last year's banking crisis in Iceland and with over £1 billion ($1.44 billion) of debt, had wanted to reach a deal with its lenders to avoid a break-up.
It had been in talks with Landsbanki, Glitnir and Kaupthing, now partially owned by the Icelandic government, about a new financial structure.
Last year Philip Green, the billionaire owner of Bhs and the Arcadia fashion group, tried and failed to buy Baugur's debt.
Reuters