 The Hagkaup head office is located in Holtagarðar, Reykjavík.In 1998 the children of Pálmi Jónsson—Sigurður Gísli, Jón, Ingibjörg and Lilja—sold the company and their 50% stake in Bónus, Hagkaup's main rival in the food retail sector, to a group of investors led by Bónus's founders.This transaction was the foundation of Baugur Group, an international retail and real estate investment company.