Landsbanki tightens grip on Baugur stores

Landsbanki has asked receivers from PricewaterhouseCoopers (PWC) to take direct control of stakes in Iceland Foods, House of Fraser, Hamleys and Baugur's jewellery chains.

Landsbanki has already filed a petition to place BG Holding which owns Baugur's UK assets into administration after it called in the group's £1bn debt.

Tony Lomas, fixed charge receiver at PWC, said the companies affected which also include the Aurum Group which owns the Goldsmiths, Mappin & Webb and Watches of Switzerland brands — have already been informed of the arrangement. "These appointments pose no threat to the businesses which will continue to operate in the usual way under the direction of their management teams," he said. "Our appointment as receivers has the effect of giving the chargeholder, Landsbanki, greater visibility over the shareholdings that have been provided as security against its lending to Baugur."

A spokesman for Landsbanki said: "What it means is that Landsbanki is placing an additional level of protection on the assets that are held by BG."

Jon Asgeir Johannesson, Baugur's chairman, has accused Landsbanki of pulling the rug from under it, allowing assets to be sold off at rock-bottom prices.