Auditors raises concerns over the financial viability of collapsed retail giant Baugur UK when reviewing the group’s 2007 accounts, it has emerged.

Baugur UK was put into administration earlier this month, after negotiations with its lenders failed.

But it has now emerged that auditors from KPMG were alerted to the fact that there was 'material uncertainty which may cast significant doubt about [Baugur UK’s] ability to continue as a going concern' when considering the company’s accounts for the year ending December 2007.

The auditor’s statement should have been made public in October last year, but Baugur UK flouted the deadline for filing its accounts for the year ending December 2007.

Daily Telegraph