Carpetright has put itself up for sale as it struggles amid increased competition and a slowdown in demand.
The floorings specialist has drafted in advisers at PwC to launch a formal sale process, The Times reported.
Sources said a sale was likely to be completed via a pre-pack deal or company voluntary arrangement, which could leave customers, suppliers, subcontractors and landlords out of pocket.
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The appointment of PwC comes after Carpetright, which has 300 stores nationwide and over 3,000 employees, appointed Teneo in April to explore cost-saving measures.
Last month, the retailer revealed it was looking to axe more than 25% of its head office staff, putting around 70 jobs at risk, as it looked to streamline operations.
It said the job losses across IT, warehousing and distribution would allow it to reduce its cost base by about £22m.
The retailer took a hit to its finances in April when a cyberattack left it unable to trade online and in-store for almost a week.
Carpetright has been contacted for comment.
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