Carluccio's has brought in advisers over a potential administration for the restaurant chain, which could hit more than 2,000 workers.
A spokesman for FRP Advisory said it is "working with the directors of Carluccio's to consider all options for the company in the current climate".
It's the start of a process that could see the restaurant close permanently in a matter of days, putting more than 2,000 jobs at risk.
The chain - founded by chef Antonio Carluccio 20 years ago - has been struggling since the outbreak of coronavirus.
A few days ago it emerged Carluccio's failed to pay its quarterly rent bill, while staff have seen salaries cut too.
Carluccio's chief executive Mark Jones, who has volunteered not to be paid in March, told staff they would only get half their usual pay this month.
"I realise this is going to be a terrible shock to all of you," he wrote to employees.
"The rapid decline in sales and then the closure of our restaurants exhausted the company's cash resources, and we have been struggling to make the payroll payment this month."
Experts said Carluccio's staff would still be eligible for the Coronavirus Job Retention Scheme, and so get paid up to 80% of their salaries, if the company was in administration.
Pubs and restaurants have faced a tough week, with the Government announcing their closure, although takeaway services are allowed to continue.
Chiquito was put into administration on Thursday night - seeing 61 of its restautrants close.
Marston's, which runs 1,400 pubs across the country, and Mitchells & Butlers, the owner of Toby Carvery and All Bar One also both warned they were struggling.
