Department store Debenhams is reported to be on the brink of collapse as and could go into administration as early as next week.
The retailer has placed KPMG, a global auditing firm, on standby to handle the process according to Sky News.
It follows the decision to to furlough the majority of the staff and close all the stores, reports Mirror Online.
The move would shield the struggling company from creditors making legal claims during the pandemic.
Debenhams fell into the hands of its lenders last April, a group of banks and hedge funds led by US firm Silver Point Capital, after struggling for years to keep up with the competition.
The measures saw rent costs reduced across dozens of branches - and 20 closed permanently.
Under the current situation, lenders don't want to lend further to Debenhams, unless they know landlords will accept another round of rent cuts as well as a five-month rent and service charge holiday.
In a statement to Sky News on Friday, a Debenhams spokesman said: "Like all retailers, Debenhams is making contingency plans reflecting the extraordinary current circumstances.
"Our owners and lenders remain highly supportive and whatever actions we may take will be with a view to protecting the business during the current situation.
"While our stores remain closed in line with government guidance, and the majority of our store-facing colleagues have been furloughed, our website continues to trade and we are accepting customer orders, gift cards and returns."
