Sir Phillip Green, the tycoon who already owns major high street retailers including Topshop and BHS, is poised for a takeover of frozen food chain Iceland following the collapse of its parent group, Baugur.

Green is thought to have discussed a possible takeover of Baugur’s UK assets with group chairman Jón Ásgeir Jóhannesson for a bargain price of around £1bn. As well as the Iceland chain, the deal would include such household names as House of Fraser and Hamleys.

The news comes after Icelandic parent Baugur saw its assets frozen following the collapse of the country’s banking system amid the current global economic crisis.

Last week Green denied having taken a stake in UK supermarket giant Sainsbury’s, which last week saw entrepreneur Robert Tchenguiz surrender his 10.6% stake in the retailer to an unknown buyer.