There are fears a high street business could close stores after it was reported the company is considering a form of insolvency.

Wilko, which operates stores in Stevenage, Hitchin and Letchworth, is reportedly considering a company voluntary arrangement (CVA) which would allow the business to renegotiate rents and possibly close stores.

The branches in Stevenage and North Hertfordshire survived a cull of 15 stores in January but, with the Bloomberg report on a potential CVA, they could be under threat.

READ MORE: Smash-hit bakery rises to occasion as it opens in second location

Wilko chief executive Mark Jackson told the Bloomberg: “We’re in the early stages of the turnaround and, as is usual, the directors continue to explore all options for Wilko’s long-term future.”

The business news outlet reported that it is understood Wilko approached financial advisors PricewaterhouseCoopers as it looks at restructuring options.