The allegations were revealed by Lord Hain, who last year used the cloak of parliamentary privilege to identify the Topshop boss as the person behind a legal injunction preventing the Daily Telegraph from publishing allegations of sexual harassment and racial abuse.
Sir Philip previously 'categorically and wholly' denied the claims.
The latest claims come as the Topshop boss was tracked down by The Guardian in Monaco as he prepares to host a lavish party on his £100 million superyacht, Lionheart, during the grand prix on Sunday.
Green refused to any questions put to him by a reporter in relation to his struggling Arcadia Group, who yesterday confirmed plans to shut 23 stores, putting 520 jobs at risk.
Responding to Lord Hain's latest claims, he said: 'How sad somebody who already has proven they're prepared to abuse the system wants to continue to behave in this manner.'
Lord Hain said he was revealing the account of a victim for the first time as he defended the use of parliamentary privilege.
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