House of Fraser is understood to be considering options, including disposals, for the Beatties stores it acquired in 2005.

The group paid close to£70m to buy the 12-strong Midlands-based chain, some of which have been rebadged.

Subsequently there was little investment in the stores, the bulk of which are in off-pitch secondary locations, predominantly around Birmingham.

House of Fraser has shown itself determined to deal with underperforming shops since being taken private in 2006, after which John King became chief executive and embarked on a transformation programme including new branches. New stores and many long-standing ones have consistently outpaced the former Beatties stores.

In November last year the retailer converted its three-floor, 80,000 sq ft Swindon branch into a discount format – an initiative that may provide an alternative blueprint for the old Beatties stores, rather than their disposal.

Retail property specialist Graham Seaton, former property director of Sports Direct, said: “Disposal of stores might be an option, but who’s going to take them? Another option might be to hand them back to the landlords for them to remodel.

“There’s a calculation to be made between the amount of money being lost and the price of pulling down the shutters, but each store would need to be considered on its own merits.”

Retail Knowledge Bank senior partner Robert Clark said: “I’m surprised House of Fraser hasn’t done more to integrate the chain. You could argue that management should have done more to integrate them at the time of acquisition.”

No comment was available from House of Fraser.