A-wear, the Irish fashion retailer controlled by private equity firm Alchemy, is not at risk of going into examinership sources familiar with the situation told Retail Week.

The heavily indebted retailer was reported to be considering examinership - a status similar to Chapter 11 in the US - in yesterday’s edition of Irish newspaper the Sunday Business Post.

However, while refinancing options are being considered, examinership is not one of them the sources said. They also rejected speculation that restructuring firms such as GA Europe might become involved.

It is understood that A-wear is in discussions to cut its level of debt repayments and enable investment. Debt-for-equity swaps are among the options on the table.

A-wear has 30 shops in the Republic of Ireland and 10 in the UK. Alchemy, which has an 80% stake in A-wear, injected £6m into the retailer last year. The private equity house and Ulster Bank are thought to be owed nearly €48m and €34m respectively.

A-wear was bought out of Brown Thomas by management in 2007.