Top Shop-Dorothy Perkins group Arcadia snapped up Iceland boss Stuart Rose as its new chief executive in a boardroom coup that sees Mr Rose return after a three-year absence.

Mr Rose, 51, takes up his new position following the retirement of former chief executive John Hoerner, 61.

Arcadia insisted Mr Hoerner's decision to stand down had been his own and, while the company policy is for staff to retire at 60, he could have stayed longer.

Chairman Adam Broadbent said: "He always said he would retire suddenly, and it is a good time in the sense that trading is better."

Mr Rose joined Burton Group, the former Arcadia, in 1989, rising to become chief executive of Burton Menswear, Evans, Dorothy Perkins and Principles.

He left in late 1997 before the retailer demerged from department store group Debenhams and became chief executive of catalogue retailer Argos.

In September 1998 he joined Cash and Carry group Booker, overseeing its merger with frozen food retailer Iceland, and was appointed chief executive of the enlarged group.

But sources have suggested his relationship with Iceland chairman and founder Malcolm Walker had not worked out as planned, and that Rose had always been keen to return to fashion retailing.

Mr Rose said his heart had always been in fashion retailing, where he started as a management trainee at Marks & Spencer.

Arcadia has been struggling to cope with tough high-street conditions, and in April unveiled a plan to close 400 stores, including its Principles for Men and Richards brands, as part of a major restructuring programme called BrandMAX.