Is the future Green for Baugur brands?
13 October 2008 09:19
;Topshop tycoon Sir Philip Green is poised to increase his influence over the UK high street after talks were held in Iceland to buy the £1 billion of debt held by Baugur.
The group, which has stakes in, amongst others, Hamleys, frozen food chain Iceland and Karen Millen, is thought to have around £1 billion of debt with Icelandic banks that have either been nationalised or have gone into administration.
Sir Philip's plan would see him take on the borrowings at a significant discount to face value. That would put him in a position to exert control over the group and negotiate the acquisitions of various Baugur companies. His sizeable retail empire already includes department store chain Bhs as well as the Arcadia group including Dorothy Perkins and Miss Selfridge.
Sir Philip flew to Iceland on Friday for talks with officials. The crisis in Iceland has left Baugur facing uncertainty over some of its funding arrangements, although the company has insisted its investments are secure. A deal would reunite him with former Topshop brand director Jane Shepherdson, who quit the business two years ago. She is now at Whistles, which is co-owned by Baugur.
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