Austin Reed is close to appointing Deloitte to work on a rescue deal after the British retailer made a £1.29m loss.
Darius Capital, which owns Austin Reed Group, is in discussions with the auditor over a company voluntary arrangement (CVA), according to The Sunday Telegraph.
A CVA would allow the retailer to reduce its debts, following discussions with creditors, while continuing trading.
It is thought that management, led by Nick Hollingworth, could wait until the end of the crucial Christmas shopping period before making a final decision.
In its latest accounts Austin Reed, whose other brands include Viyella and CC, made a loss before tax of £1.29m on sales of £109m in the year to January 2014, against a profit before tax of £1.77m on sales of £113m a year earlier.
The group, backed by investors Guy Naggar and Peter Klimt, has more than 260 shops and concessions in the UK.
A spokeswoman for Austin Reed said: “Austin Reed Group is currently working with Deloitte, the professional services firm, who are assisting us with a strategic review designed to maximise the opportunities for our businesses.
“No decisions have yet been taken and we are currently clearly focused on the trading opportunities ahead of us during the important Christmas period and completing the work to relaunch our websites on a new platform early next year.”