Icelandic retail group Baugur has extended its presence on the UK high street with the acquisition of fashion chains Karen Millen and Whistles for £120 million.

Under the deal, Baugur-owned fashion group Oasis will take control of Karen Millen, which operates around 100 stores in the UK, Europe, the Middle East and the US.

Karen Millen shareholders will take a 25 per cent stake in privately-run Oasis as part of deal.

Karen Millen co-founder, Kevin Stanford, will step down from his role as chief executive.

Baugur also owns the Hamleys toy store and jewellery chain Goldsmiths, as well as owning shares in grocery company the Big Food Group, House of Fraser department stores and supermarket chain Somerfield.