Baugur today insisted it had no plans to place its UK high street empire into administration as speculation about the troubled Icelandic investment group continued to rage.

Gunnar Sigurdsson, chief executive of Baugur, said reports suggesting the group had lined up BDO Stoy Hayward as an administrator were wrong and that Baugur was continuing to talk over its options wih its bankers.

“Further to media speculation, we would like to make clear that Baugur has not appointed any advisors,” he said.

“We continue to monitor the situation in Iceland, where possible maintain a dialogue with the banks and manage and plan our business accordingly.

“We have no plans to place our UK business into administration.”

Baugur is teetering on the brink of collapse after the Icelandic government took three of the country’s biggest banks into state hands and froze Baugur’s accounts.

Sir Philip Green, the Topshop billionaire, is hopeful of concluding a deal with the Icelandic government to buy Baugur’s £1.5 billion bank debt by tomorrow. This would hand him effective control of an empire that includes fashion chains Karen Millen, Whistles and Oasis as well as Hamleys.

Baugur also has a significant, 35 per cent stake in House of Fraser though the department store chain’s management is understood to be looking to put together a buy-out deal of its own.

Speaking yesterday, Sir Philip said a deal with the Icelandic government was likely in the next 24-to-48 hours, adding: “We are nowhere yet.” He said that it was too early to suggest which of Baugur’s UK interests he was interested in retaining.

In an interview with Sky News last night Sir Philip added that he would do what he could to prevent any of Baugur’s chains falling into administration.

He said: “I’m not interested in these businesses falling over at all, that will not help... this is 10 weeks from Christmas.

“I’ve spoken to the Baugur management... If necessary, on certain circumstances, if the need came, I would lend them some money.”

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