JOBS across East Lancashire are at risk after a national fashion chain was revealed to be on the brink of collapse over the weekend.
The main backer of Store Twenty One, formerly known as Quality Seconds, refused to continue supporting the business.
The retailer has shops in Broadway, Accrington, and Place de Creil, Nelson.
The discount chain is expected to declare insolvency this week, putting around 1,000 jobs at risk across the country.
The management filed a notice to appoint administrators earlier this month, after the company was served with a winding-up notice by HM Revenue and Customs for breaching the terms of last year’s company voluntary arrangement (CVA).
It is understood AlixPartners will handle the collapse.
The firm, which has around 125 high street shops, has attempted to raise fresh cash from its main lender, State Bank of India, however, the bank, which is owed around £14million, said last week it will not provide any further funding.
Store Twenty One’s accounts, recently filed at Companies House, revealed a drop in sales to £89.4m in 2016 from £92.2m a year earlier, while pre-tax losses increased from £6.6m to £9.3m.
Cllr Mohammed Iqbal, Pendle Council leader, said: “This is quite disappointing as the Nelson store is busy and I have seen lots of people going in there.
“I hope the any administrators would consider keeping some of the shops open.
“The government needs to look at why these big high street stores are failing.”
Store Twenty One was established in 1932 to supply clothes to the West End.
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