Zara, Topshop and All Saints remain under ownership of Hagar

Jóhannes Jónsson has decided not to go ahead with the acquisition of the fashion stores Zara, Topshop and All Saints, which are currently run by Hagar.

In a statement released by Arion Bank on 30 August it was announced that the bank had reached an agreement with Jóhannes Jónsson whereby he would acquire three specialty stores from Hagar, namely Zara, Topshop and All Saints. Jóhannes Jónsson has now decided not to exercise this option and the three stores will therefore remain under the ownership of Hagar.

Part of the agreement now between Arion Bank and Mr Jónsson is a statement from Mr Jónsson and related parties which will secure the future operation of the fashion stores within the Hagar group despite the personal connections between Mr Jónsson's family and the owners of the franchises in question.

Other items in the agreement of 29 August remain unchanged, including Mr Jónsson’s acquisition of SMS in the Faroe Islands. The purchase price is ISK 450 million, which is in line with a valuation of the shares provided by the bank. The acquisition of SMS will be settled no later than 1 December 2010.

Hagar is in the process of being sold by Arion Bank and the final details will be announced soon.