The final collapse of Glasgow-based homeware chain Au Naturale is "imminent", creditors of the stricken company were told at a behind-closed-doors meeting yesterday.
However, David Brock, parent company Ossian's non-executive chairman, said he was "working desperately hard" to save as many jobs as possible.
Of the 2255 people that were employed between Au Naturale and fashion chain Internacionale, 847 jobs were immediately saved with Internacionale's sale to an as yet unnamed buyer.
A further 14 Au Naturale stores have since been included in the sale, and Brock said another 500 jobs have been saved as part of a transfer to Internacionale.
"Other jobs have also been included in the sale," said Brock. "In the balance, there are now about 700, and I'm still hopeful we can save some more."
Meanwhile, The Herald tried to attend yesterday's private meeting, at which about a dozen disgruntled Au Naturale suppliers gathered in the historic Merchants Hall, near George Square, by accompanying one of the creditors.
According to documents seen by The Herald, creditors of Au Naturale and sister company Internacionale are owed almost £19m. However, Neil Allan, managing director of parent group Ossian Retail, who was chairing the meeting, said: "There are members of the press outside. It is at my discretion whether to let them in, and I have decided not to permit it."
After the meeting, one of the creditors, who asked that his name and company be withheld, criticised the offer by Ossian to refund its suppliers just 25p in the pound in relation to stock in Ossian's possession on April 12.
The supplier added: "We were told that 102 suppliers had already accepted the terms, and that five rejected it - so the motion was carried. I asked what the point of us all being at this meeting was, and he gave no answer. It was all just a cosmetic exercise."
Brock added: "I'm sorry about 25p in the pound for the creditors, but if they try to get their money when the company is in administration, they might just get nothing."
Ossian's problems are now widely regarded as another sign of stress in the UK retail sector and the global credit crunch - although mismanagement has also been blamed.
Entrepreneur and founder Ken Cairnduff sold the business for £45m to a management buy-out team, which later changed its name to Ossian Retail, in 2006 with the backing of Barclays, Bank of Ireland and Penta Capital.
However, new investor Agilo, which specialises in distressed companies, now owns Ossian's £25m debt. Agilo filed notice in court last month to appoint accounting firm PriceWaterhouse- Coopers as administrators.
Agilo did not return calls for comment.
However, its website describes the company as being a "London-based fund that invests in distressed firms and special situations", and former Conservative cabinet member Michael Portillo is listed as one of five members on the group's "advisory panel".
Meanwhile, Brock added that the buyer of Internacionale will likely be named next week.
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