High street giant Next has warned of possible store closures after losing a landmark legal case over equal pay - with fears now sparked over North East shops.

The retailer is planning to appeal against the decision last month that saw more than 3,500 former and current workers at the group win their pay claim after a six-year legal battle.

An employment tribunal ruled that Next failed to demonstrate that the lower basic wage paid to sales consultants compared with warehouse operatives was not the result of sex discrimination.

Next cautioned that while it is confident of winning its appeal if it did not, it could be forced to shut shops due to soaring costs.

While nothing is yet set in stone about shop closures, fears have been sparked about the future of some of the shops that the brand has in the North East. 

Next has two stores in Darlington, one in Bishop Auckland, and another in Durham, while several others are located in Teesside and Tyne and Wear.

In its half-year results, the group said: “In the possible (but unlikely) event we lose this case on appeal, there will be a financial cost to the group and its ongoing future operating costs.”

It added: “Each of our stores is treated as a business in its own right, and must remain individually profitable if they are to open in the first place and continue trading at lease renewal.

“Inevitably some of our stores will no longer be viable if this ruling is upheld on appeal.

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“Materially increasing store operating costs will result in more shops being closed when their leases expire, and will materially impede our ability to open new stores going forward.”

The company said its legal team was “very confident of our grounds for appeal”, but stressed the process may not conclude for at least a year.

Last month’s ruling marked the first equal pay claim of its type against a national retailer to secure a win and is seen opening the gates to more.

Around 60,000 Asda workers are also pursuing a similar claim, which has now reached an employment tribunal after being launched 10 years ago.