Billionaire businessman Sir Philip Green in Iceland talks

Topshop and BHS owner, billionaire Sir Philip Green, is in talks with Icelandic government ministers and officials from some of the country’s banks, to acquire the £1 billion-plus of debt owed to three nationalised Icelandic banks by Baugur retail group.

Baugur, which owns retailing brands like House of Fraser, Karen Millen and Hamleys, owes money to Iceland’s leading banks, whose assets were frozen by the Government in Reykjavik.

It is understood that Sir Philip, who arrived in Reykjavik on Friday, may invest up to £2 billion in debt and could lead to him buying several leading UK stores.

Should a deal be successful, Sir Philip would control even more of Britain’s largest clothing retailers and would create one of the most influential organisations on the high street. Between them, the two groups own over 6,000 shops and have a workforce of around 90,000.

Iceland has had a disastrous week after the nationalisation of the country’s three largest banks, Landsbanki, Glitnir, and Kaupthing. It has suspended trading on the OMX Nordic Exchange in a bid to prevent further crises.

The Baugur group has some borrowings with these banks that have now been taken over, and therefore there was a discussion about my company acquiring the debt in these different banks, said Sir Philip.

In related news, the retail industry has suffered of late with many firms being placed into administration.

The latest is Hardy Amies, the Savile Row tailor and former dressmaker to the Queen. The company is calling in the administrators after a rescue finance package collapsed.

The company operates from just six stores in the UK, which includes its flagship store at Savile Row, which was established in 1946.

Hardy Amies also designed the costumes for Stanley Kubrick’s 2001: A Space Odyssey. Its clothes are stocked in many stores throughout the country, including Harvey Nichols.

In the meantime, it has been reported that bailiffs have visited at least twelve stores operated by JJB Sports after landlords reported unpaid rents.

Last month, JJB Sports reported a half-year loss of £8.4m, against a profit of £8.7m in the same period a year ago. It scrapped the interim dividend, and offered a gloomy outlook for the future.

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