The owners of SRG, the company behind 66-store menswear chain Suits You, are understood to have begun a strategic review of the business, which could lead to its sale, closure or administration.

SRG’s shareholders, including chairman Peter Lucas, are understood to have already entered talks with two potential buyers.

Sources close to the situation said that a sale was the “preferred option” and that a deal could be concluded as early as Friday or Monday.

Restructuring firms Hilco and GA Asset advisors have both been linked to the situation but it is unclear whether either is likely to become involved.

SRG implemented a CVA earlier this year, carried out by KPMG, but its success was attached to a forecast for a significant uplift in trading. One source said: “The CVA was good from a point of view of clearing up the properties but it needed to see an improvement in trading too. SRG continues to struggle and Suits You has been a drain on the company. The shareholders are reviewing their strategic options.”

If SRG is not sold, its owners are likely to consider alternatives including administration. Other options are thought to include a trade-out, which would see the business wound down in September 2011 when the CVA is completed or a merger with another company.