Debenhams, which employs 22,000 people, could signal a plan to appoint administrators next week, Sky News learns.
Its online operations would continue to trade during any period of insolvency, sources said on Friday.
People close to the company pointed out, however, that the chain's shareholders, which include the American hedge funds Silver Point Capital and GoldenTree Asset Management, remained confident that it has a viable future."It would be a way of protecting the balance sheet during a period of vastly reduced revenue."
"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." It is unclear whether Mr Ashley, who is in the process of trying to sell Newcastle United FC, has any appetite to try to acquire Debenhams again.
The department store operator, which traces its roots to 1778, has been working on a plan to permanently close 50 shops, leaving around 110 as its core estate.For much of its history, Debenhams was highly profitable, becoming an established 'anchor' tenant on many high streets and in shopping centres around the UK.
Legal challenges to the CVA have now been overcome, prompting suggestions that it could turn to a second such .
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