Sir Philip Green is conducting a strategic review of his retail empire as he looks to invest more time and money on the international expansion of his Topshop fashion chain.

The retail entrepreneur plans to commit £250 million to the expansion of his Arcadia chains in the UK over the next three years, even as he shifts his energies to realise the opportunity for Topshop in the United States.

Sir Philip’s focus on Topshop will stoke speculaton that the retail entrepreneur will have to step back from — or sell — the Bhs chain, which has struggled to compete against its rivals Primark and Marks & Spencer in recent years.

In the light of worldwide interest in the launch of the Kate Moss collection at Topshop this month — it has been put on sale at Barney’s, the American department store — people at the company see much broader possibilities for Topshop in America. After several years examining the US market and looking for a suitable entry point, Sir Philip is planning a $100 million (£50.4 million) spending spree across the Atlantic with the opening of three Topshop stores in New York.

Sir Philip is understood to have fielded offers for Topshop, but wants to transform the store into a global fashion chain over the next five years. In the long term, he would then be in a position to sell or float the company.

Bhs, on the other hand, has been the subject of recurrent bid speculation, as rival retailers have questioned the future of a business that has suffered from declining profits and a drifting brand.

Sir Philip is said to have been mulling a sale of Bhs for some time and is thought to have held informal talks with Baugur, the Icelandic group, and Asda, among others. He is rumoured to want to sell the chain for about £450 million. The company denies that it has any intention to sell Bhs.

Industry experts say that Sir Philip could find it difficult to sell Bhs because he does not want to hand it to those businesses that are most interested in the firm’s property portfolio — rival, inexpensive clothing stores such as New Look and Primark.

Sir Philip is said to have received several offers for the chain’s stores — few are interested in the brand — but he is eager to protect his Arcadia chains, which, as well as Topshop, includes Dorothy Perkins and Burton, from the increased competition likely to be raised if rivals take on the Bhs portfolio.

Sir Philip, who, together with his wife, Tina, is the owner of Arcadia and Bhs, is listed as Britain’s seventh-richest person in the Sunday Times Rich List, with an estimated fortune of £4.9 billion. As such, he can afford to wait for the right buyer.

Sir Philip plans to spend £250 million on expanding and relocating Arcadia stores to larger sites in big cities.

Green - weighs in his options

1973 Starts in business with £20,000 loan, buying and selling clothes

1985 Buys and rejuvinates Jean Jeanie, a failing retailer, selling to Lee Cooper a year later and making his first million

1988 Appointed chairman and chief executive of Amber Day, the listed discount retailer that owned What Everyone Wants

2000 Pays £200m for Bhs

2002 Spends £850m on Arcadia, the Topshop to Burton group; Bhs valued at £900m

2004 Marks & Spencer spurns Sir Philip £9bn bid proposal

2005 Receives £1bn dividend from fashion empire, taking to £1.6bn his dividend receipts over past five years

2006 Bhs operating profits slump 54 per cent as clothing sales slide

2006 Arcadia profits fall £51.5m to £202m

Sir Philip Green

— 55 years old

— Born in Croydon, now commutes between London and Monaco

— Married to Tina, with one son and one daughter

— Sir Philip and Lady Green ranked 7th in this year's Sunday Times Rich List, with a £4.9 billion fortune

Times Recommends

• Minister in talks with Saudis to protect creditors
• Premier Inn hits back in £29-a-room row
• Bankers hit back at 'populist' bonus supertax