The joint administrators of Bonmarché have said 30 "underperforming and unsustainable" stores will close by 11 December, with about 240 staff potentially being made redundant.
Administrators added that the future of all remaining stores "cannot be assured at this time", with it still subject to negotiation between new owners and and landlords.
Tony Wright, partner at FRP Advisory, said: “We deeply regret that, as part of the administration process, 30 stores will close and staff may be made redundant. We will be working with the Redundancy Payments Office to support the affected employees.”
But there was hope for staff at the remaining 285 stores, as the administrators said they had selected Peacocks as the preferred bidder for the rest of the business.
“We have now begun advanced negotiations with Peacocks on a going concern basis and aim to complete a transaction that will maximise returns for creditors, but also provide the best opportunity to keep the retailer open and protect the greatest number of jobs," Wright added.
Administrators said they received "numerous offers" for all or parts of the business during the process.
The Peacocks deal will now be subject to further due diligence and negotiations with landlords before being finalised.
“There is still a lot more work to do before we can secure the future of the business," Wright said.
"Whilst we are optimistic that a transaction can be completed, ultimately, it will depend on ongoing negotiations between our preferred bidder and landlords on market rents and there remains a risk that the business could cease to trade."
The directors placed the business in administration after a sustained period of "challenging trading conditions and cashflow pressure", meaning the business was unable to meet financial obligations.
Chief executive Helen Connolly said at the time: "It is with deep regret and sadness that we have appointed administrators. Over the last 18 months, trading in our stores and market conditions on the high street have significantly worsened."
Connolly said Brexit was a key factor in the firm's demise.
"The delay in Brexit has created negativities both in the global markets towards Britain and damaged consumer sentiment and retail footfall on the high street," she said.
"These have compounded the challenges we were facing and without such a delay, it is feasible to believe that our issues would have been more manageable. Instead, it has only intensified the pressures."
Earlier this year Peacocks boss Philip Day took control of the high street retailer with his his Spectre investment vehicle. That investment has now been wiped out.
The deal valued the Yorkshire-based chain at around £5.7million - just five years ago the firm was worth nearly £100million.
Bonmarché, which was founded in 1982, warned last in March that trading had deteriorated, adding that it expected to lose around £5million this year.
Before entering administration the Wakefield-based business employed a total of 2,887 people, including 200 staff at its head office, and was trading through 318 stores across the UK, online and by phone.
