Sir Philip Green’s retail empire, which runs the Topshop, Dorothy Perkins and Burton brands, is on the brink of collapse.
Around 15,000 jobs are at risk, with the Arcadia Group 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.
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, Sky News reported on Friday.
The group had been in emergency talks with lenders in a bid to secure a £30m loan to help shore up its finances.
If the insolvency is confirmed, it is expected to trigger a scramble among creditors to get control of company assets.
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, with the majority of these currently shut as a result of England’s second national lockdown, which will end next week.