LK Bennett has filed a notice of intention to appoint administrators.
EY has been lined up as administrator for the womenswear business if no new investment can be found.
Drapers understands the company has cited rising business rates and rents as the reason for the possible administration.
It was in talks with an investor, but nothing has come of it so far, Drapers understands.
It comes just weeks after the retailer drafted in restructuring firm Alix Partners to consider options for the business.
Linda Bennett appointed AlixPartners to undergo a strategic review of the fashion retailer she founded in 1990, with the possibility of lining up a sale later this year.
EY and LK Bennett declined to comment.