Baugur disposes of discount fashion store

Baugur has sold ailing discount fashion chain MK One to retail restructuring specialist Hilco. The value of the deal was not disclosed.

The deal represents the first major exit Baugur has made since buying up huge swathes of the UK high street over the last decade. Baugur is currently mulling a bid for UK menswear retailer Moss Bros.

MK One reported losses of £17.4m in 2007 while suppliers reported that they had not been paid since December. It is thought that there will be substantial job losses at the 172-store strong fashion chain.