Arcadia is reported to be weeks away from a company voluntary arrangement (CVA), as owner Sir Philip Green holds talks with its advisers.
Green is seeking to launch the restructuring programme as soon as next month, Sky News reports.
The CVA proposal could see a significant number of store closures and job losses across Arcadia, whose brands include Topshop, Miss Selfridge, Burton and Dorothy Perkins.
It comes after Green is said to have launched a review of Arcadia Group and hired advisers from Deloitte to explore a raft of store closures in January.
Deloitte is advising Arcadia on the restructuring, including options to shore up its pension scheme.
Meanwhile, accountancy firm EY is advising the company’s pension trustees.
Arcadia and Deloitte have been contacted by Drapers for comment. EY declined to comment.
It also comes after Green reportedly sold Marylebone House in central London to property investment company Aprirose for £44m.
Arcadia has reportedly closed 210 shops over the last two years, representing around a fifth of its store portfolio.