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| UK Businesses For SaleBaugur puts MK One on the market
16/04/2008
Baugur has put its struggling value fashion chain, MK One, on the market. The chain is one of the worst-performing businesses in the Icelandic investor's portfolio, and did not fit in with its focus on overseas expansion.
Deloitte has been hired to manage the sale of the business, which made a loss of £17.4m last year on sales of £118m. MK One has experienced strong competition from the likes of bigger retailers, Primark and Peacocks. Baugur has altered the management to bring new life to the business since it acquired MK One in 2004 for £55m. It is thought Baugur has accepted it is not worth the investment, now that it owns a more expansive retail portfolio of larger companies, including House of Fraser. The disposal of MK One is only part of a broader restructuring plan for Baugur, who intend to focus on larger retail brands. The onset of the restructuring follows on from a recent announcement that Baugur would move out of property and Icelandic banks. It is thought that distancing the business from troubled parts of the Icelandic economy will also make the company more attractive to potential lenders. |
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