Liverpool-based department store group TJ Hughes said it intends to appoint administrators, putting into doubt the future of 57 stores and 4,000 staff.
TJ Hughes was bought by private equity firm Endless in March for a nominal amount in a bid to rescue the business. The company lost £10m last year.
Ernst & Young is expected to be appointed administrator in the coming days.
The TJ Hughes announcement late on Monday came on the same day fashion chain Jane Norman also collapsed, and shortly after Habitat and Homeform called in administrators last week.