The group, which has a stake in frozen food chain Iceland and a string of UK high street fashion names, has filed for bankruptcy protection.
Baugur has applied to a district court in Reykjavik to enter into a "moratorium process", which is similar to Chapter 11 bankruptcy procedures in the US.
It said it has taken the step to protect its assets as well as the interests of creditors.
The struggling group has an initial three weeks to find a way forward but its current woes could mean a fire-sale of its UK retail assets
This is sick-i mean where the hell were the parents? you guys must have big washing machines over there -i dnt think a four year old would fit into ours-well it wouldbe totally uncomfortable if they did!
A four-year-old girl who climbed into a washing machine was killed when her 15-month-old brother turned it on by accident.
Investigators in Orange County, California, said Kayley Ishii was thrown around inside the machine for about two minutes.
She had clambered inside only for her toddler brother to wander up and either bump into or push the start button.
A sheriff's department spokesman said the controls to the machine were around 20in off the ground, close enough for the boy to reach.
The start switch was a simple push button.
Kayley was in the water-filled, tumbling machine for at least two minutes before her mother found her.
She suffered "blunt force trauma" and was taken to Mission Hospital Regional Medical Centre following the incident on Monday.
However, she died several hours afterwards.
Thats it from me before i bore you more lol. have a good day