Electrical retailer Comet is understood to be on the cusp of plunging into administration, putting up to 6,000 jobs at risk.
The beleaguered company - which was started in 1933 - was bought for just £2 by private equity firm OpCapita last year from Kesa Electricals.
The Telegraph reports that Kesa also paid OpCapita £50m and kept liability for Comet's pension plan, which had a deficit of £45.9m at the end of April. It says Deloitte has been lined up as administrator, and would continue to run the business as a going concern while it weighs up its options.
And John Clare, the former chief executive of rival electrical retailer Dixons, has been attempting to turnaround Comet's flagging fortunes since he started in February.
Comet's suppliers have reportedly been asking for upfront payment in the run-up to the busy Christmas trading period. The company is understood to be trading without any credit insurance, a vital form of protection for suppliers against a retailer's failure.
OpCapita embarked on a job cull of around 2,000 staff to slash costs and the private equity company has received several approaches for the chain.
Many electrical retailers have struggled to remain profitable during the 'perfect storm' of a deep recession - where consumers are reluctant to shell out on expensive items such as TVs and hi-fi's and competition from online retailers such as Amazon and Apple.
Julie Palmer, a partner at business recovery outfit, Begbies Traynor, said it was 'another blow for the UK's high street retailers'.
'Whether Comet's potential administration will result in outlets being sold off to other retailers, or is merely a precursor to a sale, is as yet unclear but what is certain is that news of job cuts and store closures from yet another household name retailer can only have a damaging negative impact on consumer confidence in the months ahead,' she said.
'Tensions are clearly high as we enter the challenging but vital Christmas selling season, which we expect could be a 'Russian roulette' period for retailers. With inventory levels at their peak for Christmas trading, combined with the impact of shoppers holding out for last minute price reductions, cash flow pressures on retailers already experiencing financial distress could push some beyond the point of no return.'