Suit firm Austin Reed filed a notice of intention to appoint administrators on Friday, a move which could come as early as this week.
A potential collapse of the British firm could put 1,000 jobs at risk.
Accountants Alix Partners are understood to be looking at options for the 116-year-old company. However, the firm is thought to have made the suggestion that the business be wound down as it cannot continue to trade in its current form.
Last year, the company entered into a CVA and closed over 30 stores, including its flagship store in Regent Street after selling the lease to Supergroup, the owner of the Superdry fashion brand.
Alteri Investors bought out the company earlier this month following its £6 million loan to Austin Reed last year, which was designed to enhance Austin Reed’s multichannel operations.