Bankrupt Baugur Group

The District Court of Reykjavik today announced that Baugur Group will not be allowed any more extensions and therefore this formerly high-flying retailer is facing bankruptcy. 

It is believed that the debts of Baugur and related businesses runs into thousands of billions of ISK. 

So it turns out that Jon Asgeir Johannesson wasn’t a bigger business-genius than the rest of us. He just happened to gain control of a couple of banks in an unregulated economy. And through the ownership of his banks he managed to distort real competition, hinder real innovation and disrupt real entrepreneurs in the process, while sinking a whole nation into an ocean of debt.


1 Response to “Bankrupt Baugur Group”

  1. 1 Roy March 11, 2009 at 4:46 pm

    Lets´s just hope that when the economy recovers we can get back to this cross ownership strategy of various companies. It seemed to have worked so well in the past .If you don´t have matrix of at least 30 companies engaged in cross ownership then you you just don´t understand the Icelandic way of doing business!

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