The fashion and homeware brand Next has issued a stark warning of potential store closures following a significant legal defeat in an equal pay case.

In a legal battle that spanned over six years, the retailer was dealt a blow last month when more than 3,500 past and present employees claimed victory over pay disputes.

An employment tribunal concluded that Next had not convincingly shown that the disparity in base wages between sales consultants and warehouse staff wasn’t due to gender…