US investment firm Leonard Green has sold its 25% stake in Topshop and Topman for an undisclosed sum to the brands’ parent company Arcadia.

The sale follows the resignation last week of two Leonard Green directors, Adam Levyn and Jonathan Sokoloff, from the Arcadia board, the Evening Standard has reported.

The J Crew and Pure Gym backer acquired 25% of the business in 2012 for a reported £350m, putting the Arcadia group’s value at around £2bn.

At that time, the now-struggling Topshop was at the height of its powers and seeking to crack the American market, which Leonard Green’s investment was intended to drive.

Leonard Green said: “The transfer simplifies the shareholding structure of Topshop Topman and enables the Arcadia board to focus on the restructuring options being considered. Leonard Green remains supportive of the business and has the opportunity to repurchase its stake in the future.”

Arcadia is enduring a torrid time as trading conditions worsen and online competition strengthen. The group, which also owns Miss Selfridge, Burton and Dorothy Perkins among others, is looking to close several stores in the UK and overseas.

Its sales dropped nearly 20% to £241.5m in 2017, during which period operating profits plummeted 42% to £124m.

Owner Sir Philip Green has been accused of sexual harassment and racial slurs, both of which he denies.