The financial turmoil in Iceland might seem like a distant concern for those nervously tracking Wall Street's daily gyrations, but there's at least one way in which the meltdown in the North Atlantic could create some very real problems on Fifth Avenue. That has to do with the rapidly changing fortunes of Jon Asgeir Johannesson, the Icelandic playboy with '80s hair and a penchant for extravagant spending. Johannesson owns 8.5 percent stake of Saks Fifth Avenue through his retail investment group, Bauger, which also owns a variety of upscale British retailers. Until recently, Johannesson had been talking about buying Saks outright. He had planned to raise the necessary cash by selling a stake in a Bauger to Stodir, an investment firm he also controls. Unfortunately, Stodir went bankrupt last week after Iceland nationalized Glitnir , a bank in which Stodir has a crucial stake. So, given the state of things in Iceland, it's safe to say Johannesson is no longer a likely buyer for the luxury department store. But the potential consequences for Saks run even deeper than that. Bauger appears to be on its last legs. Johannesson has appealed for help to British billionaire Sir Phillip Green, owner of the Top Shop retail chain. He is considering buying some $3.4 billion of Bauger's debt (he's in Reykjavik at the moment trying to sort out a deal). Should Green buy up Bauger's debt, it may well mean that Johannesson loses control of the com ...
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