Auditors of the luxury brand, which Sir Jim bought in 2017, said there was a risk it could run out of cash because the owner had made no formal commitment to continue supporting the business.
The company said it was dependent on Sir Jim's Ineos not seeking repayments of amounts currently owed to the company and providing additional financial support while the company's directors repair the business.
Belstaff's accounts said loans between companies for the last financial year amounted to more than £150 million, which also revealed that the company's “liabilities exceeded its total assets by £252 million.”
Brand accounts indicated that operating losses increased by £9.7m to £14.3m due to exchange rate movements and revaluation of intercompany loans.
Belstaff was founded in 1924 in Stoke-on-Trent, Staffordshire, by Eli Belovich and his brother-in-law Harry Grossberg.
Celebrities such as Hollywood star Steve McQueen have worn waxed cotton biker jackets, which were also popularized by David Beckham and actor James Norton.
Belstaff has been contacted for comment.
