British fashion group Arcadia, which is controlled by retail businessman Philip Green, is preparing to appoint administrators from Deloitte as soon as next week.
Arcadia said on Friday it was working on a number of "contingency options" to secure the future of its brands after the a report by Sky News.
In a statement, the group sought to blame the virus for its woes. It said the "forced closure of our stores for sustained periods as a result of the Covid-19 pandemic has had a material impact on trading across our businesses.”
However, it stressed that its brands “continue to trade” and that its stores will be opening again in England as soon as coronavirus restrictions are lifted next week.
Sky News cited one retail industry figure as saying Arcadia's collapse had become inevitable after talks with a number of lenders about an emergency £30 million ($40 million) loan ended without success.
The appointment of administrators could happen as early as Monday, it said.
Arcadia runs brands including Topshop, Topman, Dorothy Perkins and Burton and employs about 15,000 people.
Earlier this year, the struggling fashion group announced that it had significant liquidity issues and it struggled to pay fixed charges of £100m a year. Its earnings are also expected to fall to £30m in 2019, from £219m two years ago.
Arcadia has stores in 36 countries outside of the UK including across the Middle East. The UAE hosts branches of all of its best-known brands including Wallis and Burton, according to the Arcadia website.
