Philip Green considers selling a stake in retailer Topshop — report

UK businessman Philip Green is reportedly negotiating the sale of a non-controlling stake in local clothing retailers Topshop and Topman with a US buyout firm, Reuters reported, citing a source in the know.

On Tuesday, Sky News reported that US private equity firm Leonard Green & Partners LP was holding discussions with a view to buying into the high street chains in a transaction valuing the two businesses at nearly GBP1bn (USD1.6bn/EUR1.23bn). Leonard Green is already in the retail business through US clothing chain J Crew, which it owns jointly with larger peer TPG Capital LP.

The targeted 25% stake would be ring-fenced from the businessman’s Arcadia Group Limited, which also owns high street clothing retailers Burton, Dorothy Perkins, Evans, Miss Selfridge, Wallis and BHS.

The parties are expected to unveil discussions about the deal tomorrow, according to the insider.

When contacted by Reuters, Philip Green did not wish to comment, while Leonard Green was not available for comment.

Arcadia recorded GBP2.68bn in sales from its 2,500 domestic stores and 615 franchised units in 39 countries in its fiscal year to 25 August.

Topshop Ltd operates stores that sell clothing and fashion products for women. Topman is the stand-alone fashion business counterpart of Topshop that caters exclusively to men’s clothing.