Sir Philip Green is understood to be in talks to sell off a stake in Topshop and Topman to a US investor.
According to Sky News, 25% of the womenswear and menswear retailers are expected to be sold to American investor Leonard Green & Partners.
Advanced talks are currently taking place regarding the deal, which is thought to be for 25% of Topshop/Topman, and will not include any other part of Arcadia. The stake is estimated to be worth around $307m (£190m).
The funds from the sale of the stake will be ploughed into the retailer’s international expansion.
Arcadia has declined to comment on news of the deal, although a spokesperson has indicated a statement will be made on Thursday.
Last month Green revealed that Arcadia had turned around from last year’s pre-tax loss to make a healthy pre-tax profit, despite sales dropping.
For the year to August 25, the company made a total pre-tax profit, after exceptional items, of £103.7m. This compares with a loss for the 2010/2011 financial year of just over £120m.
EBITDA rose from £297m to £330m.
When announcing the results Green highlighted Arcadia’s international expansion – the retailer now operates in 39 countries, including Brazil, Australia and the US – as a major contributor to the figures. Arcadia opens its first South African store tomorrow.
“It is our intention to continue to drive expansion strongly in both our USA owned stores and in our international on-line business in the year ahead,” Green said.