Arcadia Group chief executive Sir Philip Green wants to make Topshop the focus of his fashion empire through international store expansion, prompting rumours he could sell the group's Bhs chain.

According to reports in the UK press, Bhs could be on the block after suffering declining profits, with Icelandic retailer Baugur a potential investor. The Times newspaper reported that Bhs could fetch as much as GBP450m if sold.

Topshop owner Green has already indicated that the Topshop chain will be expanded to the US, with three stores due to be opened in New York.

The retailer has a growing reputation in the States, where its newly launched Kate Moss collection has been successfully integrated into the country's Barneys department store chain.

The company could not comment on the speculation when contacted by just-style today (29 May).