Iceland's crash takes a bit out of the UK high street

Remember the time when Icelandic investors were buying the high street. Now it is all unwinding:

The future of Baugur, the Icelandic group that holds stakes in many British high street retailers, was thrown into confusion today after efforts to restructure its debts collapsed. The company, which owns stakes in Hamleys, House of Fraser, Debenhams, French Connection, Karen Millen and Goldsmiths, has applied for bankruptcy protection in the Icelandic courts. It blamed the move on Landsbanki, the Icelandic bank that was nationalised late last year.

Baugur said the move would protect its assets as well as the interests of its creditors, who are owed around £1bn. Analysts said the collapse of Baugur will prompt a major shakeup on the UK high street.

Iceland as a top player in the UK retail sector; it was always too weird to be true.