High street fashion giant River Island is on the brink of collapse, with hundreds of people set to lose their jobs "within weeks".
Unless an unlikely last-minute deal can be agreed, the retailer is set to shut up shop for good following a a slump in trading.
Bosses are still fighting to save the fashion chain from a liquidity crisis and have proposed closing down 33 stores across the UK.
A further 71 shops could also see their rents slashed and a series of debts written off by the company as part of their rescue deal.
Accountancy firm PwC, which is advising the retailer, will put forward the proposals to the High Court next week.
The company's advisors are hoping to convince River Island's creditors to green-light their bailout plans.
If they do, it would unlock an emergency loan from River Island's billionaire founders, the Lewis family, which would help them pay their bills and stay afloat.
But if the High Court rejects these proposals, River Island will run out of cash by the end of August, leaving it "unable to pay its debts as they fall due".
The company warned creditors it "will not be able to continue trading as a going concern" and "would be subject to administration or other insolvency proceedings".
PwC revealed in an 800-page report that River Island faces a £10million 'funding need' in the second week of September, which could soar to £50million before Christmas.
PwC's plan would allow the fashion house to walk away from tens of millions of pounds worth of debts, including outstanding fees owed to landlords – such as British Land, the Crown Estate and Mike Ashley's Frasers Groups.
But insiders believe the proposals may prove unpopular, as many within the industry feel River Island has expanded too much in recent years.
One landlord told the Telegraph: "This is family-run, they've just overstretched, and it's unfair that the landlords will struggle because they haven't maintained their relevance."
River Island bosses blamed the slump on higher running costs and the 'migration of shoppers from the High Street to online'.
In its latest accounts, River Island reported a £33.2million loss for 2023, with sales down 19%.
As a result, it as proposed closing 33 of its 230 stores.
It is not clear how many of its 5,500 staff members will be affected by the closures.
A River Island spokesman said: "River Island circulated its proposals for a Restructuring Plan to creditors on June 20th. In combination with the company’s ongoing transformation strategy, the plan is a proactive measure to place the company on a firm footing.
"We have been having positive conversations with key stakeholders and are confident that we will achieve approval of the Plan in the next few weeks."
River Island was founded in 1948 under the Lewis and Chelsea Girl brand before rebranding in the 1980s.
The nephew of its founder, Ben Lewis, took over as CEO for a second time in February.