Baugur is understood to be interested in a joint bid for US luxury department store Saks Fifth Avenue with Dubai-based Landmark Group.

The Icelandic investor is examining the possibility of a proposal for Saks, after acquiring an 8 per cent stake in the retailer earlier this year.

Baugur said it “expects to seek to engage in discussions” with Saks management “with respect to a possible acquisition”. It is also said to be in talks with Landmark, one of the largest fashion and clothing retailers in the Middle East and India.

Saks runs 54 stores in the US, including the Fifth Avenue site. Baugur owns a raft of chains in the UK including Hamleys and House of Fraser and is understood to be keen to get a foothold in the US.