Debenhams has appointed a firm to draw up contingency plans for possible liquidation should an attempt to sell the business fail, according to reports.
On Tuesday the struggling chain said it would cut a further 2,500 jobs, while taking "all necessary steps" to give it every chance of a viable future.
The company said that the move to appoint Hilco Capital, first reported by Sky News on Saturday, was part of that process but not an indication that liquidation was a likely outcome.
"Debenhams is trading strongly, with 124 stores reopened and a healthy cash position," Debenhams said in a statement.
"The administrators have appointed advisors to help them assess the full range of possible outcomes which include the current owners retaining the business, potential new joint venture arrangements (with existing and potential new investors) or a sale to a third party."
The job cuts will affect roles across the entire Debenhams brand - including within its distribution centres - as the chain plans more store closures.
There is currently no breakdown for store-by-store cuts.
Debenhams has been a fixture of the British high street for generations and the original company was founded in 1778.
But like many businesses it has struggled in the face of an unprecedented pandemic, with coronavirus concerns and lockdown measures proving to be severely damaging.
On the previously announced cuts, a spokesman for Debenhams said: "We have successfully reopened 124 stores, post-lockdown, and these are currently trading ahead of management expectations.
"At the same time, the trading environment is clearly a long way from returning to normal and we have to ensure our store costs are aligned with realistic expectations.
"Those colleagues affected by redundancy have been informed and we are very grateful to them for their service and commitment to Debenhams.
"Such difficult decisions are being taken by many retailers right now, and we will continue to take all necessary steps to give Debenhams every chance of a viable future."
