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 a store in St Albans, is reportedly considering a company voluntary arrangement (CVA) which would allow the business to renegotiate rents and possibly close stores.

The St Albans branch survived a cull of 15 stores in January but, with the Bloomberg report on a potential CVA, the location could be under threat.

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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.