found guilty on a single charge of a breach of book-keeping rules, with the conviction being upheld on appeal on 6 June 2008. Johannesson was given a 3-month suspended prison sentence. It also left his position as chairman uncertain under Icelandic law because the conviction meant that he could not serve on any company board for 3 years. As a consequence of this, and the fact that much of Baugur's portfolio was now based in the UK, in July 2008 Baugur considered relocating to the UK, where Johannesson could keep his board position. Demise and collapse It emerged in October 2008 that BDO Stoy Hayward was advising Baugur on restructuring and that Philip Green, the owner of Bhs and the Arcadia Group had travelled to Iceland for negotiations regarding him making an investment in Baugur, amid reports the group was on the brink of collapse On 4 February 2009, Baugur applied for protection from its creditors after restructuring negotiations with Landsbanki broke down. The bank also applied for Baugur's UK arm to be put into administration. Ownership and links to Russia In December 2002 Gaumur Holding acquired a 30.97% stake in Baugur Group. Luxembourg-registered Gaumur Holding was originally Compagnie Financiere pour l'Atlantique du Nord. The company was registered on 22 June 1998. In March 2000 changed its name to Gaumur Holding. Official records show that Gaumur Group had three shareholders: Starbook International Limited (P.O. Box 3186 Road Town, Tortola, British Virgin Islands) Waverton Group Limited (P.O. Box 3186 Road Town, Tortola, British Virgin Islands) Birefield Holdings Limited (P.O. Box 3186 Road Town, Tortola, British Virgin Islands) In 2005 Danish media reported that behind Starbook, Waverton and Birefield is Shapburg Limited (registered in the same mailbox 3186) and Quenon Investments Limited (registered in the same mailbox 3186). It was discovered that: Both companies owned a stake in Baugur Group. Both companies owned a stake in the Luxembourg-registered Compagnie Financiere Scandinave. A month after incorporation it was renamed the Scandinavian Holding and later Meidur S.A. (later Exista). Both companies owned a stake in Alrosa Finance in Luxembourg. Another shareholder was Russian state-owned diamond company ALROSA. Shapburg Limited owned a stake in Alfa Finance Holdings. Another shareholder was Alfa-Bank of Russia. Icelandic businessmen Björgólfur Thor Björgólfsson, Björgólfur Guðmundsson and Magnús Þorsteinsson all came to London from Saint Petersburg, Russia where they did business in the beverage sector together. Former assets 365 - sold