Icelandic investment group Baugur is reported to have put discount fashion chain MK One on the block after failing to turn the struggling stores around.

According to newspaper reports, Baugur has appointed accountant Deloitte to sell the business.

The Icelandic retail investor paid GBP55m (US$109m) for MK One in 2004, but plunged to a GBP17.4m loss last year after failing to compete with cut-price rivals like Primark and supermarkets such as Tesco and Asda.

No-one at the company was available to comment when contacted by just-style. 

Earlier this month Baugur completed its restructuring as a pure retail investor, adding GBP430m to its acquisitions war chest after agreeing to sell its media, technology and financial investments.

The company, which already owns UK retailers House of Fraser and Hamleys, and has interests in Debenhams, Woolworths, French Connection, Moss Bros and Bookers, plans to focus mainly on big name brands with the potential for international expansion.