Icelandic retailer’s woes raise fears for Chester shops

Feb 6 2009 Chester Chronicle

ICELANDIC investment company Baugur, which owns retailers represented in Chester city centre, has entered into bankruptcy protection, a process similar to British administration.

Baugur is the major shareholder in department store chain House of Fraser, which is signed up to running the anchor store within the credit- crunched Northgate Development.

It also has investments in Chester retailers Iceland, Jane Norman, French Connection, Debenhams, Nine West as a concession within Debenhams, Coast, Oasis, Karen Millen, Warehouse, All Saints, Principles, Goldsmiths and Watches of Switzerland.

Businesswoman Jane Harrad- Roberts of Christleton-based Marketing Projects said decision-makers should be examining other options for Northgate.

She said: “I hope we are not still hanging the Northgate Development around a single House of Fraser coat hanger for the development’s ‘anchor store’.

“I would be out browsing the shops by now for other options, with cash-rich department stores like John Lewis and Harrod’s, if I were ING or our new council.”

She added: “Baugur’s collapse will affect at least 10 large-multiple type stores in the heart of Chester.”