A US investor in Sir Philip Green’s fashion empire has sold its stake in the Topshop brand as the company works on restructuring plans.
Los Angeles private equity firm Leonard Green & Partners has sold a 25 per cent stake in Topshop and Topman back to parent company Arcadia Group.
Two Leonard Green directors also resigned from the board of Arcadia last month.
The firm said its move “simplifies the shareholding structure” of Topshop and would allow the Arcadia board to focus on restructuring options.
It was revealed earlier this year that the group - which also owns Dorothy Perkins, Burton and other clothing brands - is mulling over a range of options which could include a Company Voluntary Arrangement. Leonard Green paid a reported £350m for the stake in Topshop/Topman Limited (TSTM) back in 2012, valuing the group at £2bn. The investment was touted as the next step for the brand in its quest to break into the American market.
A spokesman for Leonard Green said the firm “remains supportive of the business and has the opportunity to repurchase its stake in TSTM in the future”.