Iceland’s biggest supermarkets to fall into government hands?

BónusJohannes Jonsson, one of the owners of Hagar which owns, among others, Iceland’s Bonus, Hagkaup and 10-11 supermarkets, told Stod 2 News that the company owners have not lost control. He said that they are currently refinancing the group and have at least a few more weeks to successfully complete the process.

Hagar is owned by 1998 ehf. which is itself owned by Jon Asgeir Johannesson, the former Baugur boss and his family who are now struggling to keep control of Hagar. Johannes Jonsson is Jon Asgeir Johannesson’s father. According to DV, two Kaupthing staff members have now been put on the board of Hagar and the nationalised bank will take the company over if the refinancing is not successful. This means that a large swathe of the Icelandic high street would fall under indirect government control.

Hagar runs the Icelandic operations of: Hagkaup, Bonus, Bananar, Hysing, Adfong, Ferskar Kjotvorur, 10-11, Debenhams, Karen Millen, All Saints, Warehouse, TOPSHOP, Zara, Oasis, Dorothy Perkins, Coast, Evans, Utilif, Jane Norman and DAY, according to the company’s website.

Jonsson said the refinancing is going well, pointing to a contract between the company and Kaupthing to increase capital in the company as evidence. He would not be drawn on where the indebted business planned to source the extra capital from.

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