Top Shop to Dorothy Perkins retail group Arcadia has begun talks to sell off five of its 14 fashion chains.

After a strategic review of the business, the group said it was in discussions to sell off Warehouse, Principles, Racing Green and Hawkshead to a management buy-out team.

It is also planning to sell Wade Smith, the Liverpool-based designer retailer.

Arcadia's chief executive Stuart Rose said: "The decision to simplify the business will enable us to focus on our core brands and the proposed sale of the niche brands takes us forward in this aim."

He added he expected the deals to be completed in the near future, promising more news on Wade Smith "very soon".

Talks with Hilary Riva, managing director of Arcadia's speciality business unit, and Peter Davies, managing director of the group's multi-channel business unit, about the management buy-out were "progressing well".

Mr Rose said Arcadia would now be able to concentrate on delivering "better quality, better value, better service and more innovation" in the group's remaining six brands.

The sales performance across the continuing chains helped Arcadia report a turnover of £1 billion for the first half, just £37,000 below the figure achieved in the same period the year before.

Pre-tax profit before one-off costs rose to £29.1 million compared with a loss of £8.6 million, a figure at the top end of City analysts' expectations. Mr Rose said much remained to be done to turn around the group.

The group was also taking control of its Dial home-shopping joint venture with department store group Littlewoods, buying out its counterpart's stake for £7.5 million.

Mr Rose said the move would give Arcadia "more control" over the business, which lost £3.5 million in the first half.