Fashion retailer River Island is believed to be considering a CVA or entering another form of administration.

The retailer, which has outlets in Gloucester and Cheltenham, is looking at closing shops and negotiating reduced rents, according to Retail Week.

Last month the company announced it was making 250 head office staff redundant as part of cost-cutting measures.

At least 75 per cent of creditors must agree to a company voluntary arrangement.

In figures announced in September, operating profits fell from £80.6million to £35.1million.

The coronavirus pandemic has hit the business further with the majority of staff furloughed throughout lockdown.