Despite reports, the Icelandic retail group, which has interests in House of Fraser, Woolworths and Wyevale, continues to discuss options with its bankers.
Yesterday Baugur's chief executive denied reports that the company planned to place its UK retail chain into administration. Gunnar Sigurdsson also stressed that rumours that the group had lined up BDO Stoy Hayward as an administrator were untrue.

Mr Sigurdsson said: "Further to media speculation, we would like to make clear that Baugur has not appointed any advisors.

"We continue to monitor the situation in Iceland, where possible maintain a dialogue with the banks and manage our business accordingly.

"We have no plans to place our business into administration."