Following a meeting between Landsbanki and the House of Fraser management team, a joint announcement has been made saying the Icelandic bank will retain a stake in the British department store group.
Landsbanki said it had no plans to sell its 35% share in Highland Group Holding, the consortium that bought HoF in 2006.

The statement, released earlier this week described "very positive discussions" and went on to say "House of Fraser and Landsbanki would like to stress that the recent events surrounding Baugur have no impact on the trading or banking position of House of Fraser and it is business as usual.

"Landsbanki also reiterates that it has no intention of selling on shares in Highland Group Holding, which owns House of Fraser, in the foreseeable future. The Resolution Committee of the bank stated: 'Our aim is to maximise the long-term value of the shareholdings and we give our full support to the House of Fraser management team.'"