Credit insurer Coface reviews cover for Baugur
Coface, the credit insurance group, is reported to have withdrawn cover for suppliers to several retailers that are owned or part-owned by Icelandic group, Baugur.
Baugur is a privately-owned venture capital business that has focussed some of its investment on the UK retail sector.
The move by Coface will have been prompted by fears of a slowdown in the UK retail sector and the banking crisis in Iceland, which has seen the country’s three largest banks, Kaupthing, Landsbanki and Glitnir taken into state ownership in the past fortnight.
According to a report in The Times, Coface has reviewed parts of Baugur’s business and decided to withdraw or reduce some cover.
As the banking crisis in Iceland began to strain diplomatic relations with the UK yesterday, Baugur issued a reassurance that developments in the Icelandic banking sector will have no impact on the group and its portfolio of companies, even if Icelandic banks are forced to sell their shares in Baugur companies.
Baugur UK owns or holds stakes in several UK High Street stores including House of Fraser, Warehouse, Hamleys, Iceland, Karen Millen and Oasis.
Category: Business Insurance News, Companies News, Insurance News
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