Baugur has been forced to plough £15m into MK One, after the discount fashion retailer went £21.4m into the red and was forced to restructure its balance sheet.

Accounts filed at Companies House last week show that MK One's like-for-like sales fell 22% in the first five months of the last financial year, which ended on 27 January, before a change in management at the retailer. Sales rose 1% in the remaining seven months of the year.