Icelandic investment firm Baugur Group has called in retail entrepreneur Sir Philip Green for talks about a possible investment in its UK businesses after the collapse of the Icelandic banking system, according to reports in the UK press.

Sir Philip, who owns UK chains Topshop and Bhs, flew into Reykjavic over the weekend to discuss Baugur's assets with the company's chairman, Jón Asgeir Jóhannesson, and Icelandic government officials, according to the Daily Telegraph.

He is reportedly looking to buy much of Baugur's government-controlled debt in exchange for stakes in the firm's range of fashion businesses.

However, Baugur representatives made no comment on the report when speaking to just-style today (13 October).

In the UK, Baugur's principal investments include fashion chains Whistles and Jane Norman, Mosaic Fashions - including the Oasis, Warehouse and Karen Millen retail brands - and UK department store chain House of Fraser.

Baugur last week insisted that loan facilities for its UK portfolio were unaffected by the Iceland's banking collapse.

The company also has stakes in the UK chains Debenhams, Moss Bros and French Connection.