The owner of US department store Barneys has emerged as a potential buyer of both Arcadia and Debenhams.

Authentic Brands Group, which also controls retailers Brooks Brothers and Forever 21, is talking to the administrators of Sir Philip Green’s Topshop-to-Dorothy Perkins empire and the troubled department store business, The Sunday Telegraph reported.

Arcadia and Debenhams hit the wall a fortnight ago as the most recent Covid-19 lockdown exacerbated long-running problems.

Authentic Brands’ interest in Arcadia and Debenhams pits it against Frasers Group tycoon Mike Ashley, who is also interested in both.

Ashley is particularly interested in Debenhams’ online business, according to The Mail on Sunday. He believes its strength in the beauty category would enable him to emulate the success of etailer The Hut Group.

Authentic Brands founder and chairman Jamie Salter is understood to have built up a reserve of approximately $1bn to be used for the acquisition of embattled businesses.

As well as Ashley and Authentic Brands, value fashion giant Primark is sizing up Arcadia brands, The Sunday Times reported.

The purchase of Arcadia brands, including its flagship Topshop business, is also being considered by rival retailers including Boohoo, Marks & Spencer and Next.

Administrators hope for up to £200m for Topshop and initial offers are expected by the end of this week.

More follows.