Alarms on High St as backer fails; End to row over cheap foreign labour in sight CREDIT CRUNCH CRISIS.Byline: By GRAHAM HISCOTT THE future of several big chain stores was in doubt last night as a giant backer stood on the brink of collapse. Stricken Icelandic group Baugur owns stakes in a host of well-known shops from toy-seller Hamleys to department store House of Fraser House of Fraser is a British department store group with 61 stores (July 2007) across the country. The group was founded in Glasgow in 1849. The flagship London store is now the House of Fraser on Oxford Street whilst the largest is in Birmingham. and clothing outlets Warehouse and Principles. Baugur has applied for bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most protection after talks with its banks over a pounds 1billion debt collapsed. Experts believe its UK arm will go into administration and be forced to flog huge chunks of its investments. Retail expert Nick Bubb, of Pali International, predicted large swathes of the High Street would change hands. He said: "Baugur has no choice. It has to repay the banks and they are driving it." Bhs and TopShop owner Sir Philip Green is expected to be interested in snapping up stores, as is Dragons' Den star Theo Paphitis Theo Paphitis (Born 24 September 1959, Limassol, Cyprus) is a Greek Cypriot entrepreneur based in England. In the Sunday Times Rich List 2006 he was ranked 444th with an estimated wealth of £125 million. . CAPTION(S): INTEREST Sir Philip Green |
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