Malcolm Walker, chief executive of the Iceland supermarket chain, has written to suppliers, saying that the economic crisis in the country of the same name will not harm the outfit.
Walker said that suppliers have been in contact with the company after the global economic problems impacted on the Icelandic bank Kaupthing and the Baugur Group.
“Iceland (the company) is trading astonishingly well, with like-for-like sales running at over 14% for the year to date and over 17% in recent weeks. We are a highly cash-generative business,” he claimed in a written letter, reports Retail Week.
He added that his firm has a good relationship with Baugur, which is a minority shareholder, and the future of the grocer is unconnected to the “ownership structure”.
In August, Iceland made a bid for Woolworths, but this was rejected as it “undervalued” the business.
