JJB Sports has appointed accountancy firm KPMG to advise it on its future and to lead negotiations with its banks.
JJB Sports saw its share price plummet last week after it was hit by a raft of difficulties including the withdrawal of credit insurance for its suppliers and revelations that landlords had sent bailiffs to some of its stores after the retailer sent out post-dated rent cheques.
JJB Sports is backed by Icelandic investment group Exista which has added to concerns over the sportswear chain's future.
Last month JJB Sports posted a loss of £9.7 million.
Reports suggest JJB Sports may be forced to offload some of its fitness clubs to help secure its future.