Sir Philip Green's retail empire is on the brink of collapse, with around 15,000 jobs at risk.
The Arcadia Group, which runs the Topshop, Dorothy Perkins and Burton brands, is expected to appoint Deloitte as administrators in the coming days.
The company said it is "working on a number of contingency options", after Sky News reported that the group's future is in doubt.
Sources close to the process confirmed the reports.
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An Arcadia spokesman said: "We are aware of the recent media speculation surrounding the future of Arcadia.
"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.
"As a result, the Arcadia boards have been working on a number of contingency options to secure the future of the group's brands.
"The brands continue to trade and our stores will be opening again in England and ROI as soon as the Government Covid-19 restrictions are lifted next week."
Arcadia could tumble into administration as soon as Monday, it was reported.
The group had been in emergency talks with lenders in a bid to secure a £30 million loan to help shore up its finances.
It is the latest retailer to have been hammered by the closure of stores in the face of coronavirus, with rivals including Debenhams, Edinburgh Woollen Mill Group and Oasis Warehouse all sliding into insolvency since the pandemic struck in March.
The group has more than 500 retail stores across the UK.
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