Jane Shepherdson, the former brand director of Sir Philip Green’s Topshop business, is making her high street comeback and taking another three of the billionaire’s former lieutenants with her.

Ms Shepherdson has teamed up with Baugur, the Icelandic investment house, to buy and run Whistles, the women’s fashion boutique.

Under the deal, Baugur will demerge Whistles from its Mosaic business and back a new management team brought in by Ms Shepherdson to run the chain.

This is understood to include Karyn Fenn, who quit Topshop last year. She and Ms Shepherdson are largely credited as being the driving force behind the success enjoyed by Topshop in recent years.

Jo Farrelly and Keith Wilks have also joined Whistles as marketing director and finance director respectively. They both fulfilled the same roles at Topshop until leaving last year.

Ms Shepherdson said: “This is a very exciting venture.

“I am thrilled be taking over such an established British brand with enormous potential.”

The Times revealed 16 months ago that Ms Shepherdson had decided to quit Topshop, shortly after Sir Philip brought in Kate Moss to design her own range of clothing. Both said the departure had nothing to do with Miss Moss being hired.

A number of retail investors have reportedly been trying to sign Ms Shepherdson up since the departure and today’s deal is a major coup for Baugur. Sir Philip once said she was effectively the chief executive of Topshop and she was once described as the most important woman in fashion by Drapers, the fashion business journal.

Until now she has only taken up one post, as product adviser to People Tree, the ethical clothing label.

Gunnar Sigurdsson, Baugur chief executive, said: “We are delighted to invest in the business with Jane and her team.

“Whistles is a fantastic brand with great potential and with the talent and experience that Jane and her team bring, we have no doubt that they will take advantage of the solid foundation that has already been built.”

Whistles was founded in 1976 by husband and wife team Richard and Lucille Lewin. The name came from the cockney rhyming slang for ‘whistles and flute’, which translates as ‘suit’.

The chain was bought six years ago by Karen Millen, now itself part of the Baugur empire. Whistles runs 34 standalone stores and 36 concessions in the UK and Ireland. It also has 8 stores overseas.

No financial details about today’s deal were released, but it is thought to value Whistles at up to £20 million.

Ms Shepherdson and her management team are believed to have taken a 20 per cent stake. Baugur has retained a 49 per cent share.

Ms Shepherdson said: “We see a great opportunity to create something unique for the woman who loves great design, isn’t scared of a little edginess and who wants to reference but not slavishly follow trends.”

Explore Industry Sectors

• Banking & Finance

• Construction & Property

• Consumer Goods

• Engineering

• Health

• Industrials

• Leisure

• Media

• Natural Resources

• Retailing

• Support Services

• Technology

• Telecoms

• Transport

• Utilities

Times Recommends

• B&B shareholders forced into funding rescue
• John Lewis department store sales plunge 8.3%
• Families turn to credit to cover mortgage bills