TOP SHOP owner Sir Philip Green is today trying to clinch a deal to acquire the £1 billion-plus of debt owed to three nationalised Icelandic banks by Baugur, the group behind Karen Millen and Hamleys.

If the deal succeeds it will give the billionaire the biggest retail footprint in Britain.

Green has already presented a letter to the Icelandic authorities confirming he has the funding in place and a deal could be wrapped up in the next few days.

As part of any deal, the BHS owner could take effective control of Baugur’s minority stakes in a number of London-listed retailers.

These include a 29% holding in Moss Bros, a 20% share of French Connection and a 7% stake in Debenhams. Baugur’s public-company holdings were worth £45m at Friday’s close.

Green said yesterday: “I like to think we are one of the few people in the UK that can do this in not many hours.”

Although Green is not taking ownership of Baugur’s stores, acquiring its debt would give him a huge degree of control over the businesses.

A tie-up would also create one of the most influential forces on the high street. The two groups own nearly 6,400 shops between them and employ around 90,000 staff.

Gunnar Sigurdsson, Baugur’s chief executive, has consistently stated that the collapse of the Icelandic banks and the country’s economy would not affect its UK operations but insurers have withdrawn cover to Baugur’s suppliers as fears grew over the future health of the empire.

Green already owns BHS and Arcadia, the group behind chains including Topshop, Burton and Dorothy Perkins.

Baugur has a diverse range of interests on the UK high street. It is the biggest shareholder in Mosaic, the women’s fashion group behind Principles, Oasis and Karen Millen among others.

It also owns Hamleys, Iceland, the grocery chain, Jane Norman and Whistles, the fashion retailers.

Fears over Baugur’s future surfaced last month when the Icelandic government nationalised Glitnir, the country’s third-largest bank.

That move led to Stodir, an investment vehicle of Baugur founder and main shareholder Jon Asgeir Johannesson, being placed into administration.

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