Philip Green-owned retailer Bhs is expected to appoint Carat to handle its media buying and planning account, thought to be worth &£5m.
Carat is already the incumbent for Dorothy Perkins, part of Arcadia, also owned by entrepreneur Green, who last month withdrew his &£9.44bn bid to buy M&S.
Green has vowed to show M&S shareholders and management just “who is the best retailer” and is investing in above-the-line marketing of both Bhs and Dorothy Perkins to help in the fight against the rival high street clothing chain.
He is recruiting an advertising agency to work on Bhs and has sanctioned an investment of &£50m to upgrade the 164-strong chain. Euro RSCG, Ogilvy & Mather and HHCL/Red Cell are thought to have pitched for the business.
A Bhs spokeswoman says that it has not yet made a decision on an advertising agency and therefore cannot comment on the media buying and planning.
Grey has been appointed to create television advertising campaigns for Dorothy Perkins.
Green’s stores are expected to refresh their merchandise and embark on heavy bouts of advertising, price-cutting and promotional activity.
Green cannot make another bid for M&S for six months.