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.
As Retail Week went to press, it is understood SRG shareholders, including chairman Peter Lucas, are talking to two potential buyers.
Restructuring firms GA Asset Advisors and Hilco have been linked to the situation, but it is not clear if either are 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 trading uplift. 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”.
The source added: “SRG continues to struggle and Suits You has been a drain on the company.”