RETAIL entrepreneur Philip Green may have to make a hostile bid for Marks & Spencer following a boardroom shake-up.

Stuart Rose, former boss of Top Shop and Dorothy Perkins chain Arcadia, was appointed chief executive of troubled M&S at the weekend as Paul Myners became chairman.

The pair replace Roger Holmes and outgoing chairman Luc Vandevelde, who stepped down with immediate effect.

As well as the challenge of reviving M&S sales, Mr Rose can expect a takeover approach for M&S from retail entrepreneur Philip Green within days.

Mr Green, who acquired Arcadia when Mr Rose was boss in 2002, stunned the City last week by indicating that he was preparing a bid.

Analysts said the appointment of Mr Rose raised the chances of Bhs boss Mr Green having to table a hostile bid in order to land M&S.

Henk Potts, of Barclays Stockbrokers, said: "Stuart Rose is a heavyweight retailer and will have a clear strategy on how to turn the business around.

"Some shareholders may now think that their future prospects are best served by a new and reinvigorated management team."

Mr Rose said he wanted to restore M&S' reputation for good quality, good value, good service and innovation.

He told BBC Radio 4's Today programme that while M&S had not been on the high ground for a few years, it was a fundamentally very sound business.

He said no offer had yet been made for M&S, but added: "When Philip comes with an offer, if he does, obviously the board will have to consult with the shareholders and decide what is the right thing for the business."

Mr Rose was credited with reviving Arcadia's fortunes by concentrating on its main brands and selling off non-core chains.

He started his retailing career as an M&S management trainee in 1972, rising to become commercial director, leading the company's European division in Paris.

It is thought Mr Holmes, who joined M&S in 2000, will receive a pay-off of about £600,000, while Mr Vandevelde is likely to get £450,000.

The new chief executive said: "I know the business well, having spent 17 years of my retailing career with the company.

"My task is to harness the skills and energy of its people for the long-term benefit of our customers and shareholders. I look forward to the challenge."