Icelandic retail giant Baugur on Thursday announced a second quarter loss of $4 million as it was hit by problems at its Bonus Store chain in the US.

The Reykjavik-based company, whose portfolio includes Debenhams and TopShop franchises in Sweden and Iceland, said its results were also impacted by a revaluation of supplies and restructuring costs.

However it still managed to post a first half net profit of around $1.8m although it did not provide year-ago figures.

Baugur, which recently sold its 20 per cent stake in UK fashion giant Arcadia to billionaire retail entrepreneur Philip Green, said earlier this week it has axed 45 stores and plans to sell all of its outlets in Florida.

It added it expects the restructuring to lift its performance over the next few months and is optimistic of hitting future profit targets.