// Iceland founder Sir Malcolm Walker vows to retain control of the business as hedge funds pay its debt at a steep discount
// Walker said he had no plans to sell the business despite claims that he had begun searching for interested parties
Iceland founder Sir Malcolm Walker has pledged to retain control as hedge funds circle the frozen food retailer by purchasing its debt.
Walker said he had no plans to sell the business despite claims that he had begun searching for interested parties to acquire the business he founded 52 years ago.
However, he said that he had rejected “frequent approaches” from suitors for Iceland.
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Investors are said to have bought the supermarket’s debt for as little as 67p in the pound earlier this year.
Such strategies are typically used to position for a potential debt-for-equity swap and seize control if borrowing becomes unaffordable.
Meanwhile, Iceland, which is facing a £750 million debts bill, trade credit insurers including Allianz and Atradius have cut their exposure to the supermarket.
Walker and co-owner Tarsem Dhaliwal insisted that Iceland Foods is “trading incredibly well”.
“In the current climate, customers have never needed affordable quality frozen food more,” they said.
“Iceland Foods is 52 years old this week and is a privately owned multi-generational family business. Our sons, Richard Walker and Paul Dhaliwal, hold executive positions and will take over from us in the future. 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.
“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.”
