Sir Philip Green, the retail entrepreneur, is to merge his Bhs and Arcadia businesses to cut costs and stores.
The Topshop billionaire is to merge his Bhs and Arcadia businesses so that Bhs will be become part of the Arcadia business.
Arcadia owns chains including Topshop, Evans, Burtons and Miss Selfridge.
Until now the two business have been run separately with different head offices, supply chains and staff.
Some experts believe the move could lead to some of Bhs’s largest shops housing all the Arcadia and Bhs brands under one roof leading to the closure of smaller stores close by.
It is thought the merger is likely to lead to some job losses as the move will cut costs of two logistics and supply chain networks.
Despite the merger the British Home Stores stand-alone out of town homewares concept will continue to expand.
Sir Philip bought Bhs in 2000 from Storehouse and he bought Arcadia in 2002.