The Top Shop retail empire faces further scrutiny as more allegations about the behaviour of company owner Sir Philip Green come to light.

Former employees at the company told investigative journalists at The Telegraph that managers asked them to wear "skimpy" outfits when Green inspected shops in America.

The billionaire was also alleged to have made offensive remarks about employees he believed were gay.

The revelations are likely to put further pressure, not only on Top Shop but Green's broader retail empire, trading under the Arcadia name.

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The latest claims come off the back of #MeToo revelations last year that saw Green called out for a range of misconduct.

The British businessman was alleged to have used legal agreements and payments to hide accusations of sexual harassment, racist abuse and bullying.

Green was named in parliament by politician Peter Hain, who said he felt it was his "duty" to reveal the name under parliamentary privilege after being contacted by someone involved in the case.

Hain's statement named Green as the subject of an article in the Telegraph newspaper on Wednesday about a leading British businessman accused of sexually harassing and racially abusing his staff.

It also emerged Green allegedly paid employees seven-figure sums to hush up allegations of sexual harassment and racism allegations.

These revelations quickly led to calls for Green's resignation.

However, he has dug in his heels, denying any wrongdoing.

Since the first report by the Telegraph, dozens of workers have come forward sharing similar stories of sexual harassment and racial abuse.

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The latest report also details allegations about a rampant culture of sexual misconduct at Top Shop that saw junior staff treated inappropriately by their managers.

The employees claim that matters of this nature were not dealt with by the company.

Worth about US$2.7 billion according to the Bloomberg Billionaires Index, Green has also been embroiled in scandal for years over his management of the UK department-store chain BHS. He netted a fortune in dividends from the company while the employee pension fund was hundreds of millions of pounds in the red. In 2015, Green sold the troubled business for one pound to a former race-car driver with no previous retail experience. The company subsequently collapsed.

- Additional reporting from Bloomberg.