Sir Philip Green’s retail empire faced further allegations of inappropriate behaviour on Sunday night, after staff alleged that they were told to wear “revealing” clothes when the billionaire visited them at work.

Former employees said that they were told by managers to wear “skimpy” outfits when Sir Philip inspected shops in America and claimed that the “culture” within the company meant that managers were not reprimanded when complaints were made about sexual harassment.

The billionaire was also alleged to have made offensive remarks about employees he believed were gay, including calling people “dykes” and “faggots”.

The revelations are likely to increase pressure on Sir Philip and Arcadia, his retail company.