Iceland considers Iceland chain lawsuit over use of name

Frozen food retailer Iceland has defended its name after it emerged the Icelandic government was considering legal action to protect its identity.

The chain, which employs more than 20,000 people at more than 850 stores, was founded 45 years ago but has a frosty history with its namesake.

It was controlled up until 2009 by Icelandic retail conglomerate Baugur before the stake passed to national banks Landsbanki and Gitnir on its bitter collapse.

Iceland founder and chief executive Malcolm Walker later completed a management buyout in 2014.

The company said on Friday: "Iceland Foods has traded under the Iceland name in the UK since 1970, and is today one of the UK's most recognised brands.

"We have also traded as Iceland for many years in other EU countries, and in non-EU countries, including Iceland itself.

"We are not aware that our use of the Iceland name has ever caused any confusion with Iceland the country."

Promote Iceland - attached to the country's foreign ministry- said it was concerned Icelandic firms are able to
register the name "Iceland" across the UK and EU.

A spokesman for the ministry told the Press Association: "I can confirm that this is being looked into, but no decision has been made."

The issue may prove to be an unwanted distraction for the firm as it concentrates on a fightback following years of falling sales in the supermarket price war with discounters.

Its most recent annual results showed like-for-like sales fell by 2.7% in the year to 26 March compared to a decrease of 4.4% in the previous 12 months.

The company, which also owns The Food Warehouse superstore business, has been investing to improve the quality of its products, store experience and advertising.