Loans and Finance

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Wednesday, February 04, 2009

The Ring of "Strength"

The Times reports that the Icelandic company Baugur (which means "Ring of Strength") is about to fall into administration.

Baugur owns/controls a number of UK retail companies including Iceland, Hamleys, House of Fraser, Goldsmiths, Mappin and Webb, Principles and Whistles.

The move to administration has been brought about by the collapse of talks with Landsbanki, an Icelandic bank, over restructuring Baugur's £1BN debts.

A classic example of the dangers expanding too fast using other people's money.

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