ICELANDIC retailer Baugur has bought the Oasis fashion chain for £152m.

The move provides Baugur with an even bigger foothold in the retail sector after snapping up toy shop Hamleys for £59m in the summer and increasing its stake in House of Fraser.

Oasis Stores, which has 342 outlets of its Oasis and Coast brands, was taken private by its management in a £55m deal in 2001.

The sale represents a £32m return for the boardroom team led by chief executive Derek Lovelock, who financed the buyout using funds from private equity firm PPM Ventures.

All nine senior managers are expected to keep their jobs and a combined 30 per cent stake in the business in order to mastermind an expansion of the Oasis and Coast brands.

Oasis has 40 stores in Europe, the Middle East and Asia, including a branch in the Icelandic capital Reykjavik.

Mr Lovelock said the deal with Baugur would enable Oasis to focus on its expansion strategy, which includes the acquisition of smaller brands.

Sales at Oasis rose 23 per cent to £164m in the two years to January 31, while operating profits almost doubled to £15.6m for the same period.