Sir Tom Hunter has sold his d2 clothing business to management in a multi-million-pound deal as part of moves to "de-clutter" his retail portfolio, amid tough times on the high street.

However, dismissing suggestions that the disposal heralded a clear-out of his retail portfolio, a spokesman for Hunter said the Ayrshireman's passion for retail was undiminished and confirmed that he still had plenty of money to pursue it.

While Hunter intends to focus on big retail and property investments at home and overseas, the spokesman said the entrepreneur's West Coast Capital would retain smaller businesses which made the grade in the portfolio reviews completed by directors.

On current trends, core operations include USC, the branded clothing chain, and Office, the upmarket shoe retailer.

"We see a lot of retail business at the core of the business going forward in terms of the likes of Office and USC, but that's not to say we would ever say never (to selling them)," said the spokesman.

He declined to comment on Hunter's plans for Qube, the value shoes chain which has found the going tough lately. This may suggest Hunter would listen to offers for Qube However, the spokesman made it clear that Hunter would not be under any pressure to sell off any parts of the retail and property portfolio that he has amassed since selling Sports Division for £290m in 1998.

With backing from Bank of Scotland, Hunter has built a portfolio that has been valued at around £1bn, including investments in big retail operations like Wyevale Garden Centres.

While experts predict there could be a dramatic slowdown in the retail and property markets as a result of the credit crunch, the spokesman said Hunter's West Coast Capital investment operation was well placed to ride out the storm.

"We have taken a very conservative approach over the last five years to leveraging our equity, hence we're not in a position where the credit crunch has affected us to any large degree. We are still a cash-rich business.

"We have got a significant amount of money to invest in retail and property. With the cycle there comes opportunities if you have got the cash."

While Hunter may remain committed to USC and Office, the sale of d2 confirms a significant shift in his focus.

Formed from a combination of the former Fosters Menswear, part of the Jeanster casualwear chain, and Jeans for Sale, d2 was the first retail operation developed by Hunter after Sports Division.

The company, which operates 80 stores across the UK and Ireland, has been sold to a management team led by managing director Alan Kinney and Jim McGonigle. The two men helped Hunter create d2 six years ago, Hunter's spokesman said the disposal was a multi- million-pound deal but declined to give details.

A sector analyst said d2 would likely have sold for less than £10m.

The disposal was completed around three years after West Coast and management started discussing an MBO. However, it comes after a challenging period for d2, which has faced growing competition from discount clothes operations like Primark and supermarkets such as Asda.

In the year to January 31, 2007, d2 made the first trading loss in its history, posting a pre-tax deficit of £1.94m compared with a profit of £1.42m in the previous 12 months. Sales edged up from £49.6m in 2006 to £50.7m.

Noting that d2 was negotiating to add more brands to its range, Kinney said: "Whilst retail is tough, our mid-market position and our ability to move fast will see us move forward positively."

d2 will remain headquartered in West Coast Capital's base at Dundonald, Ayrshire.

Qube was founded by McGonigle in 2003, as concessions operating out of d2.

McGonigle, who runs USC, will have a major shareholding in d2 but effectively be a sleeping partner.