Sky News understands that the board of Unbound Group is trying to raise up to £2m within days to pave the way for the implementation of a restructuring plan.

City sources warned on Wednesday that unless that funding was forthcoming "in the near future", Unbound's board would have little choice but to call in administrators.

Hotter Shoes trades from 17 standalone stores and just under 10 concessions in garden centres.

The company has been struggling for some time and in May announced that a £10m investment from Marwyn Investment Management had fallen through.

Unbound said in a stock exchange announcement on 27 June that it had terminated a formal sale process for the Hotter Shoes business.

It added that it had held discussions with major shareholders and had received "some positive feedback" about a share sale to raise between £1.5m and £2m.

Those talks are said to be continuing.

Interpath Advisory, the restructuring firm, is working with Unbound on its contingency planning.

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In 2020, it launched a company voluntary arrangement (CVA) which resulted in the permanent closure of 46 stores.

A spokesman for Unbound said: "All options remain on the table and are still being considered, as we previously announced."