Arcadia Group has denied that it is gearing up to sell off brands including Topshop and Dorothy Perkins, as the company embarks on a plan aimed at shoring up its financial future.

The Sunday Times reported that Philip Green’s retail empire had begun the process of separating functions such as IT and human resources so that they could be sold off as independent units in future.

The paper reported that Ian Grabiner, the group’s chief executive, was leading the process after making the case that the group could not continue to rely on trade alone in order to keep the company’s turnaround plans on track.

However, Arcadia group denied the story, describing it as “wholly inaccurate and unfounded.”

A spokesman for the group added: “Following the formal completion of the CVA [company voluntary arrangement] process last week, the board is now fully focused on implementing its turnaround plan across all its brands.”

The group secured approval from creditors to launch a series of CVAs in June, and last week vowed to forge ahead with the strategy after US landlords withdrew a formal legal challenge to the plan.

The High Street behemoth - which includes Topshop, Topshop, Burton and Dorothy Perkins - has the greenlight for a total of seven CVAs, allowing the company to begin rent renegotiations with landlords and close around 23 stores.

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