The future of iconic womenswear retailer Viyella hung in the balance today amid speculation the company is facing financial difficulties.

Management at the retailer, which has around 120 stores and concessions, told Retail Week that they expect to make a statement about the future of the business on Wednesday.

A source close to the retailer said the management and its solicitors are consulting with shareholders and advisors about the business’ future.

A separate source said trade at the retailer had been tough and the economic downturn had weakened its position in the market. It is as yet unclear whether the retailer will be able to continue in its current form.

Staff at its Regent Street store confirmed that they were unsure as to the company’s position.

The retailer, which is registered under William Hollins and Company on Companies House, was founded in 1784 and offers classic clothing for the mature woman.

In August 2007, investors Harris Watson took the brand off the market after a three month review which involved a potential sale.

Harris Watson told Retail Week that the two directors of the company were unavailable for comment.