Baugur has insisted its funding is secure after the Icelandic retail group, which owns a string of UK retailers including Iceland, became caught up in Icelandic financial turmoil.

Owner Jon Asgeir Johannesson put investment company Stodir into administration this week after Glitnir, Iceland’s third-largest bank, was nationalised. Stodir had a 32% stake in Glitnir and had announced plans in July to take a 39% stake in Baugur. These plans were scrapped as the company went into administration, prompting speculation that Baugur could be forced to sell off a number of businesses.

But Baugur’s assets were based in the UK, US and Scandinavia, so had no exposure to the Icelandic economy, said Baugur’s CEO Gunnar Sigurdsson.

“The funding is secure and the vast majority is through international banks with whom Baugur has a long working relationship,” he added.