Blacks Leisure, the camping and outdoor clothing retailer, has said it may need to raise more capital after disappointing sales.
Debts at the troubled company have "increased significantly" because of depressed consumer spending and normal seasonal trading patterns.
Sales of camping gear, clothing and hiking boots fell nearly 10% in recent weeks, the company said.
However trading in May and early June was better than the previous year.
Blacks expects that it can strike a deal with Bank of Scotland to increase its banking facility to £40m. The company also said it was looking at ways of strengthening its overall capital structure to support "plans for development and growth".
The company - which operates the Blacks Outdoor and Millets chains - has struggled in recent years and has been the subject of takeover rumours. It closed 88 stores in 2009.
It confirmed that Julia Reynolds would start as chief executive from 1 August. Mrs Reynolds was formerly head of Figleaves, a lingerie website, and previously had worked at Tesco.