Ted Baker’s lenders have called in advisers to carry out an independent business review.

Barclays and RBS have appointed FTI Consulting to review the future of the business, Sky News reported. The review is expected to take several weeks to conclude and could end up with lenders restricting conditions when providing debt to the fashion retailer.

The news comes days before the fashion brand’s Christmas trading update to investors, which is expected to bring bad news.

Ted Baker issued several profit warnings in 2019 and faced difficult times as founder and former chief executive Ray Kelvin left the business following allegations of inappropriate conduct.

Despite the review, the company is not expected to collapse, due to the profitability of its oversees licensing operations.

Just before Christmas, the company faced further trouble after revealing it had overstated the value of its stock by £25m.

Chief executive Lindsay Page departed soon after with a replacement yet to be found.