Faith has been put on the market after Barclays, its bank, appointed restructuring specialists FTI Consulting, to run a fire-sale of the business.
According to The Daily Telegraph, Barclays is owed about £25m by Faith and recently turned down a debt for equity swap proposal from Bridgepoint Capital, Faith's private equity owner.
Instead Barclays has appointed FTI and the newspaper said Faith could ultimately be sold out of a pre-pack administration deal.
Bridgepoint, which has injected £15m of extra equity into Faith Shoes since it bought the chain out for £64m in 2004, offered to plough a further £8m into the chain in return for a capital restructuring with Barclays.
However Barclays is understood to have wanted to run a sale process so it could benchmark the value of its loan. It is thought that Bridgepoint could lose all of the money it has invested in Faith, with Barclays also exposed to losses if a sale goes ahead.