A major retailer in Newtown could be about to shut it's doors as part of a nationwide package of store closures.

The Arcadia Group, which owns Dorothy Perkins, is considering closing 67 stores nationwide according to a leaked report seen by the Financial Times, with Newtown believed to be on the list of stores.

Dorothy Perkins employs 8 staff in Newtown, who have been told they could be preparing to close up as early as June 8.

This year the group has attempted to renegotiate rents at it's 570 UK stores as part of efforts to turn the business around. The earmarked stores reportedly have an annual rent total of £11 million.

The Arcadia Group, which also owns Topshop and Topman, Miss Selfridge, Burton, Evans and Wallis, have been contacted for comment.

However, a statement released by the group last month said it was "exploring several options" in order to restructure the business.

“Within an exceptionally challenging retail market and given the continued pressures that are specific to the UK high street we are exploring several options to enable the business to operate in a more efficient manner,” said a spokesperson.

“None of the options being explored involve a significant number of redundancies or store closures.

“The business continues to operate as usual including all payments being made to suppliers as normal.”

Montgomeryshire AM Russell George has said he was disappointed with the news that the store was to close, and expressed concern at the number of empty shop units in the Bear Lanes centre.

"This is very disappointing, as the shop is a key anchor business in the town," he said.

"I’ve spoken to staff at the Arcadia group head office, and also the local staff at the Bear Lanes Centre, I think it’s important to try and allow both parties to provide an update if they feel they can”

"There are currently 5 units empty in the Bear lanes shopping centre, and when a number of shops remain empty, it can have a negative knock-on effect to other shops in the town."

Following speculation that there has been a dispute between the Arcadia group and the owners of the Bear Lane shopping centre, Threadneedle Pensions limited, Mr George says he has requested clarification from both businesses.

Newtown County Councillor Joy Jones described the potential closure as "awful news for Newtown" and called on the group to reconsider.

"Dorothy Perkins has been part of the town for many years and is a store that many people use. With high streets around the country suffering as many big stores close this is not what we want to see for our town," she said.

"It’s vital that we keep as many shops open in Newtown as possible so that the public have something to come into town for and not head further away to other large towns or shop on the internet.

"If the problem is down to the cost of the rent it's very sad as the shop has eight staff who will no longer have a job and the shop could end up standing empty for some considerable time in a prime position on at the end of Bear Lanes shopping centre along the centre of Broad Street.

"The company who manage bear lanes are based in Birmingham and won’t have to see the effect daily that this empty store will have on our town."