DOZENS of jobs are under threat after a deal to rescue high street shoe chains PriceLess and Barratts was rejected.

Parent company Stylo had hoped to retrieve the stores from administration by reaching an agreement with creditors to relax debt repayments, but failed to strike a deal.

Chief executive Michael Ziff said if the proposals were voted down it would "threaten the employment of some 5,400 people", including 48 workers in North Staffordshire and South Cheshire.

The company had hoped creditors of PriceLess and Barratts would agree to rescue the business from administration and place it in a company voluntary arrangement (CVA); a deal to give the company breathing space in its debt repayments.

Meanwhile, struggling sportswear chain JJB Sports said it has gained further respite from lenders as it seeks to raise cash by selling its health clubs.

PriceLess and Barratts joint administrator Daniel Butters, of Deloitte, said: "Following the meeting and vote yesterday we confirm that creditors and landlords have not accepted the CVA proposals.

"As a consequence we will now seek to achieve a sale as a going concern to preserve as many jobs as possible. We are in focused talks with interested parties in an effort to deliver a swift solution."

News those talks have broken down come as another blow to staff in Hanley, Stoke, Stafford, Congleton and Crewe.

A spokesman for Stylo said: "There is no guarantee what is going to happen now.

"With the companies in administration they are going to have to get whatever value they can."

Stylo was founded in 1935 and has headquarters in Bradford.

The firm posted a pre-tax loss of £12.5 million last year.

Sports chain JJB, which employs dozens in Hanley, Stafford, and Crewe, has managed to extend a bank payment until March 16.

JJB, which has debts of around £60 million, has renegotiated payments to banks Barclays, HBOS and Icelandic lender Kaupthing.

The Wigan-based group said the deal was subject to lenders remaining satisfied with progress in selling its health clubs to one of "a number" of potential bidders; one of which is thought to be former owner Dave Whelan.

It is not known whether JJB's plans to open a new health club in Tunstall are affected.

Richard Day, spokesman for the Stoke-on-Trent City Centre Partnership, said it was a tough time of year for retailers.

He said: "We have gone through Christmas and the post-Christmas sales and a lot of retailers are now trying to re-finance to buy stock.

"The problem is a lot of banks are worried about giving finance for stock they don't think will sell.

"Then retailers are trying to do deals with banks just to stay in existence."