Former Baugur chief Johannesson guilty of tax evasion

Hamleys sign Baugur owned a stake in the toy shop Hamleys

The former boss of failed Icelandic retail group Baugur has been found guilty of tax evasion.

Jon Asgeir Johannesson was given a one-year suspended prison sentence and a fine of 62m Icelandic crowns ($500,000; £310,000).

He said the fine was "peanuts" compared with the costs of pursuing the case.

Before the global financial crisis struck, Baugur invested heavily in the UK High Street. At one point it owned stakes in House of Fraser and Hamleys.

'Nobody goes to jail'


  • Hamleys
  • House of Fraser
  • Iceland
  • Oasis
  • All Saints

Iceland's top court found that Mr Johannesson had deliberately misfiled his tax returns between 1998 and 2003.

In a statement, he said: "They didn't find the big crime they wanted and nobody goes to jail".

Mr Johannesson's sister Kristin Johannesdottir and their former co-worker Tryggvi Jonsson were also found guilty.

Baugur filed for bankruptcy in 2009 with debts of £1bn in the aftermath of the financial crisis.

The firm had borrowed heavily from Iceland's banks. It then turned out that the banks themselves were also heavily indebted.

Icelandic banks owed about six times the country's total Gross Domestic Product (GDP) and when the world's credit markets dried up, they were left unable to refinance loans.

Iceland was then humbled into asking the International Monetary Fund for a bailout.

More on This Story

More Business stories


Features & Analysis

  • TricycleTreasure trove

    The lost property shop stuffed with diamonds, bikes... and a leg

  • Boris Nemtsov'I loved Nemtsov'

    A murder in an atmosphere of hatred and intolerance

  • Image of George from Tube CrushTube crush

    How London's male commuters set Chinese hearts racing

  • INDHUJA'Dorky tomboy'

    The Indian who attracted proposals through honesty

Elsewhere on the BBC


  • Kinetic sculpture violinClick Watch

    The "kinetic sculpture" that can replicate digital files and play them on a violin

Try our new site and tell us what you think. Learn more
Take me there

Copyright © 2015 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.