Icelandic Retail Investment Firm Seeks Protection

London Baugur Group HF, the indebted Iceland-based retail investment group, said Wednesday it has applied for court protection for its assets while it negotiates with creditors.

The company, which has been entangled by the country's financial and economic collapse, said it had applied to the district court in Reykjavik to enter a moratorium process, a procedure under insolvency law that allows a company to suspend payments to creditors while negotiating.

The company reportedly is carrying $1.4 billion in debt. Baugur has holdings in retailers in Britain, Scandinavia and the United States, including an 8.6% stake in Saks Fifth Avenue in the United States.