The Reject Shop’s chief executive has quit as the retailer falls into the red.

Ross Sudano on Thursday announced his resignation after the Reject Shop’s latest figures revealed the troubled retailer could be facing losses of up to $2 million, stoking concerns over its future.

The retailer said Mr Sudano would be leaving in the “near future,” most likely a matter of days not weeks, saying it is “an appropriate juncture” to “bring renewed energy and vigour to the role.”

The news comes after the brand announced massive store closures, with plans to close seven stores by the end of June.

While the retailer predicted inroads earlier this year, it is now looking at losses of $1 million to $2 million in the 2019 financial year.

The company blamed the figures on tough market conditions including dwindling consumer confidence and the rising cost of living.

“The company experienced a significant weakening in sales performance despite delivering well on key seasonal offers, including Easter, and this is an extremely disappointing result for our shareholders,” Chairman of the Reject Shop, Mr Bill Stevens, said.

“These factors, combined with increased competitive activity, have driven a decline in gross margin during the period.”

“Notwithstanding the current challenges facing the business, we continue to have confidence in the company’s long-term prospects, and the opportunities for a new CEO to deliver a refreshed product range that will appeal to a broader customer base, delivered through an evolving and expanding Store Network. One of the key priorities for the new leadership of the business is to generate sales growth and develop strategies to respond to the challenging retail environment.”

General Manager of Supply Chain, Strategy and Innovation Dani Aquilina has been appointed acting CEO as the company searches for a replacement.

The news also comes as the company appoints two new directors to its board, Mr Steven Fisher and Mr Zac Midalia.