Yves St Laurent men's wear licensee Marchpole today said it was veering towards receivership after its bankers issued a demand for repayment of a £4.6m loan on 6 June.

In a statement, Marchpole said the Royal Bank of Scotland's actions were prompted by "the fundamental uncertainty arising from the ongoing disputes between the majority shareholders and the board of the company".

Former chief executive Michael Morris textile entrepreneur Harold Tillman are the largest shareholders in the business with a 37.6 per cent stake. They have been pressing for strategic and boardroom changes for a number of years.

Marchpole hopes to avoid insolvency by selling its head office before the bank loan expires.

However, it has had to shelve plans to move to the Aim market following pressure from the shareholders and pending the resolution of its loan crisis.