Bathstore has gone into administration putting 531 jobs and 135 stores at risk.
An inside source said the announcement was made internally this morning following a bulletin that the bathroom retailer had lost money.
The retailer has 169 nationwide stores, including sites in Scotland .
The Scottish stores include Stirling, Perth, Great Western Road and Clarkston in Glasgow, Dundee and Edinburgh and more.
The source also said staff were informed this morning that Bathstore will become a "product-only" retailer, and that all installations will cease.
Accountancy firm BDO are thought to be handling the administration.
The bathroom retailer will continue to trade while administrators at BDO seek a buyer.
Ryan Grant, BDO business restructuring partner, said: "Despite significant investment into the business over the past five years, Bathstore has struggled to overcome the well-documented challenges facing the UK retail sector.
"The appointment was made after several months of difficult trading, and the failure of ongoing talks to find a buyer for the business. Bathstore is continuing to trade in administration whilst the administrators seek a buyer."
