Sir Philip Green is in negotiations to sell off a stake in Topshop and Topman to a US investor, Retail Week understands.
The womenswear and menswear retailers are expected to be partially sold to American investor Leonard Green & Partners.
As reported by Sky News, the deal is thought to be for 25% of Topshop, and will not include any other part of Arcadia. Arcadia has declined to comment, but futher details are expected to be revealed on Thursday.
Leonard Green & Partners is an investor in US retailer J Crew, which is run by Mickey Drexler, a peer and friend of Sir Philip Green. It is unclear at this point whether there will be any connection between J Crew and TopShop.
However, a shared interest in J Crew and TopShop, which want to enter the UK and expand in the US respectively, would likely be facilitated by the friendship between the pair.