Shares bought in retail group Arcadia by Jon Asgeir Johannesson, chief executive of Icelandic retailer Baugur, are being probed in a fraud case started by Icelandic police.

The charges against Johannesson reportedly include embezzlement of £825,000 during his failed bid for Arcadia four years ago.

The allegations made against Johannesson and five others were revealed in a letter written by Johannesson to the Icelandic police, in which he denies all of the 40 charges made against him.

Arcadia's high-street names include the Top Shop and Miss Selfridge fashion chains.