Green has teamed up with Alan Witzenfeld, a multi-millionaire Essex businessman who is a big player in the UK's costume jewellery market, to create the new women's fashion accessory chain.
Witzenfeld is chairman and a major shareholder of DCK Concessions, which operates more than 3,400 high street concessions, including Topshop's Freedom brand and Miss Selfridge's Diva range. Now Arcadia Group is understood to have formed a joint venture with DCK.
Muse is expected to concentrate on high-performing out-of-town shopping centres. Arcadia has hired property agents to open 25 more Muse stores this year, each covering about 600 sq ft, but said would eventually like 50 outlets.
Potential locations include Lakeside in Essex and Cribbs Causeway in Bristol.
Witzenfeld made£5 million by selling part of DCK to venture capitalists for£30 million in March 2003. His remaining stake nearly doubled to more than£10 million last May when the firm changed hands again in a£55 million deal.
DCK is now part-owned by HBoS and its chief executive is former Arcadia director Steve Longdon, who has been at the company since December 2004.