PE Firms Circle Icelandic Retailer Baugur

LONDON (Reuters) – Troubled Icelandic retail investor Baugur has attracted interest from a number of private equity firms seeking to buy its 1 billion pound ($1.75 billion) debt-pile, The Financial Times said on Wednesday.

The Icelandic government, already in talks with British retail entrepreneur Philip Green about selling the debt, has received approaches from private equity firms TPG, Alchemy and Permira, the newspaper added.

Baugur has a number of retail interests in the UK including department store chain House of Fraser and iconic London toy store Hamleys. It owes the debt to Iceland’s collapsed banks — seized by the North Atlantic island’s government last week.

(Reporting by John Bowker; Editing by Gary Hill)