Iceland founder rebuffs takeover approaches
Investors are said to have bought Iceland’s debt for 67p in the pound earlier this year as Iceland currently has £750m in debt
Malcolm Walker, the founder of Iceland Foods, has reportedly dispelled rumours that he has been “quietly marketing” the company to other interested parties, according to The Times.
Walker has reportedly rejected “frequent” approaches from potential buyers for the frozen foods supermarket in the past.
The Times reported that he found himself having to set the record straight after claims that he had begun “quietly marketing” his business, which is said to be facing opportunistic debt investors.
Investors are said to have bought Iceland’s debt for 67p in the pound earlier this year as Iceland currently has £750m in debt.
In addition, The Times reports that trade credit insurers including Allianz and Atradius have cut their exposure to the supermarket.
The supermarket, which has over 1,000 stores and employs 30,000, also insists that Iceland Foods is trading “incredibly well”.
Walker said: “In the current climate, customers have never needed affordable quality frozen food more. Iceland Foods is 52 years old this week and is a privately owned multi-generational family business. We have no plans to sell the business, despite frequent approaches.
“Our 2025 bonds are trading in the mid-80s, which is positive given the current economic climate. The maturity is over two years away, we are paying a very low fixed interest rate, and when the time comes, we are supremely confident of our refinancing plans.”
He added: “Only a very small proportion of our suppliers have credit insurance. Credit insurers regularly review cover upwards and downwards for all retailers in the UK; therefore this is “business as usual” for us. We have a collaborative and effective working relationship with all of our suppliers, and they have reported no issues to us to date.”
