The group began as a supermarket and general retail company in Iceland, before diversifying to own a number of businesses at its peak, primarily in the United Kingdom.

Its largest creditor Landsbanki applied to place Baugur's UK arm, BG Holdings, into administration that month.

[2] In 1989, the Baugur Group was started by the opening of a single 'Bónus' supermarket in Reykjavík by Jón Ásgeir Jóhannesson and his father, Jóhannes Jónsson.

These companies control strong brand names and are considered to have substantial opportunities for growth, show a net profit, and management has shown and proven its ability to succeed.

In May 2004, Baugur Group, along with other investors, acquired the majority in the British jewellery chain Goldsmiths, in cooperation with the company's management, for the amount of ISK 14.4 billion.

Goldsmiths, which was established in Newcastle upon Tyne in the year 1778, operates 165 jewellery stores in Britain and is the second largest in the country in its sector.

Oasis is aimed at independent, fashion-conscious 18- to 30-year-old women and operates from 281 outlets across 14 countries, including the Republic of Ireland, the UK and France; Coast is a destination brand for women's special occasion clothes with 135 outlets; Karen Millen has a niche position away from the mass market, bordering on the designer brands; and Whistles has more-grown-up styling and quirkier taste than the rest of the high street.

[3] In July 2005 company founders Jón Ásgeir Jóhannesson and Jóhannes Jónsson were charged on 40 counts [citation needed] including tax and accounting irregularities, fraud and embezzlement.

On 3 May 2007, Jón Ásgeir was found guilty on a single charge of a breach of book-keeping rules, with the conviction being upheld on appeal on 6 June 2008.

It also left his position as chairman uncertain under Icelandic law because the conviction meant that he could not serve on any company board for 3 years.