Now And Then: A Tale of Two Bankruptcies

Storage Units become Housing Units

Few locations in downtown Reykjavík have shapeshifted as massively in the past two decades as the plot of land extending inland from Reykjavík harbour and Harpa. Or maybe that’s hyperbolic — let’s explore the area.

Both of the pictures were taken from the roof of the Central Bank building. The former was shot in 1984 when the then Icelandic shipping company Hafskip, whose main offices and operations were located in and around the building pictured, was reported to be in dire financial straits. Hafskip was declared bankrupt the following year. Its CEO, Björgólfur Guðmundsson, and many other employees of the company were subsequently prosecuted and sentenced for criminal conduct related to the company’s operations and a lively political witch hunt ensued.

Fast forward to 2004 and the former Hafskip building was still standing, with the plot unchanged. The previously sentenced Björgólfur, however, had by then become the main owner of newly privatised bank Landsbankinn. When the area was due for development Björgólfur managed to secure a part of the former Hafskip plot for Landsbankinn’s new flagship building.

But before long came the economic collapse of 2008. Landsbankinn and Björgólfur went bust, and the classic political fallout ensued (again). So Björgólfur’s plans to exact revenge through erecting a temple for his new business venture on the ruins of his failed outing went similarly tits up.

Or sort of. Fast forward another 20 years and a now state-owned Landsbankinn went ahead and built its HQ on the plot Björgólfur chose way back when. Also in the vicinity is the Harpa concert hall, a five-star hotel, a food hall, a gigantic subterranean parking garage and a slew of overpriced apartment complexes.

Aesthetically, though, things haven’t really changed much. Sure, the container units have been replaced by mid-rise mixed-use buildings, but they are all rather grey and dull — the unofficial colours of Reykjavík.