Iceland plans stakes in British high street

House of Fraser and other well-known UK retailers could be part owned by the Icelandic government under plans to reform the country’s failed financial system, it was reported today.

Iceland is understood to be drawing up a scheme that could see a deal between its nationalised banks and Baugur, the investment group which owns a raft of UK retailers.

If the debt-for-equity swap goes through, the Icelandic government and creditors to its stricken banks would own shareholdings in Baugur firms such as House of Fraser, Hamleys, Karen Millen and frozen food chain Iceland, according to the Financial Times.