Reykjavik  - Icelandic investment group Baugur Thursday said it plans to file for bankruptcy after was denied an extension of its moratorium and temporary suspension of payments on Wednesday.

The announcement came a month after the district court in Reykjavik granted the moratorium as the group sought to restructure its operations.

Baugur Group chairman Kristin Johannesdottir issued a statement saying the decision was "a disappointment," adding that the group was convinced the restructuring plan was "viable."

The investment group is the latest Icelandic entity to be hit by the financial crisis that has impacted the North Atlantic nation of some 320,000 people.

Prior to the global credit crunch, the group had interests including supermarkets and retail chains in Iceland, Britain and the Nordic region.

The investment group traces its roots to a supermarket founded in 1989 in Reykjavik by Jon Asgeir Johannesson and his father. The expansion was fuelled by access to credit. (dpa)