Baugur stake in Matthew Williamson

The Icelandic company Baugur has taken a minority stake in British design house Matthew Williamson. The investment will help build the London-based company's retail network and establish a stand-alone accessories business. According to chief executive and co-founder of Matthew Williamson, Joseph Velosa, there is enough funding for two stores, the first of which will be in New York . It will likely open in September 2007. A second store will probably open in Paris in September 2008, although this has yet to be confirmed. Velosa told WWD that the funds would also be invested in a "proper" bag and shoe business. "We'd like to treat it as a separate business, and the plan is to launch it for the fall 2007 season," he said. Matthew Williamson wholesales to 180 clients worldwide and generates annual sales of about $15.2 million. Baugur has made its investment through its relatively new Venture Business Unit. "The company has been profitable from year one, and we are excited to be part of this next stage in the company's development," Gunnar Sigurdsson, managing director of UK investments at Baugur, told WWD. Matthew Williamson executives could not be reached for comment. The news appeared to come as a surprise to a Baugur spokeswoman. Thus far, the company has not returned with a confirmation.