There’s more bad news for Boohoo Group as it emerges that a prospective buyer for its London office has pulled out of a deal that would have helped to boost its under-pressure balance sheet.

The Israeli property investor had been expected to acquire the Soho office for around £60 million but a survey has thrown up some concerns.

It comes as the company needs around £47 million in cash by August next year to meet a debt repayment and also as the spat with major shareholder Frasers Group continues to play out.

That £60 million purchase price would have meant the company taking loss as it paid £72 million on the six-storey office building on Great Pulteney Street only three years ago while the company was still expanding fast organically and also by snapping up brands.

It had acquired Karen Millen, Debenhams and part of the portfolio of collapsed Arcadia Group.

The fact that it planned to sell the building for less than it paid partly supports the Frasers Group belief that its current problems could result in a “fire sale of assets at knockdown prices”.

A Boohoo spokesman said the company is still in “active negotiations with regard to the sale of our London office”.