LONDON (AP) — British retail entrepreneur Philip Green yesterday played down the prospect of buying into the retail assets of Icelandic investment company Baugur in the near term.

Green, who owns the Arcadia retail empire which includes Topshop and Dorothy Perkins, said that it is "too early" to strike a deal with Baugur as the collapse of Iceland's economy takes precedence.

"If there's something that they want to do, it is probably slightly too early," said Green, who held talks in Reykjavik with Baugur executives earlier this month.

"I think the country is sorting out its own finances," he told British Broadcasting Corp. radio. "Basically, the country has run out of money."

Green has been discussing the potential of buying more than £1 billion ($1.7 billion) of debt held by Baugur, giving him huge sway over the company's British stores such as House of Fraser and Hamleys.

Companies related to Baugur employ some 53,000 people worldwide and have a total turnover of £5 billion.

Green added that a deal is still possible, but noted that the "thought of owning another thousand shops is pretty daunting," as he revealed that operating profits at Arcadia fell six percent to £275.3 million ($468.1 million) in the year to August 30. Same-store sales dropped 2.8 percent over the same period.

Green, who famously paid himself a £1.2 billion pound dividend from Arcadia in 2005, took no payout for the year.