Arcadia owner Sir Philip Green is reported to be in early talks to sell off a number of Bhs stores to Primark as part of a group cost cutting exercise.

The deal will be the second tranche of stores that Green has sold to the value fashion chain after Primark snapped up 10 Bhs stores last year.

According to The Independent on Sunday, Green is seeking to reduce costs across the Arcadia Group by closing stores where leases are coming to an end. It is putting its various chains, such as Dorothy Perkins and Burton, into larger Bhs stores to reduce the group’s rent bill.

Green has previously looked to sell off the whole Bhs chain, which he acquired for £185m from Storehouse in 2000, although he failed to close a deal.

Primark, owned by conglomerate Associated British Foods (ABF), will buy the stores as part of its European expansion plan.