Debenhams is expected to appoint directors early next week to protect the company from creditors’ claims.
The department store chain has already closed 22 stores this year and plans to close another 28 next year.
The retailer fell under administration in 2019 and the future of the Lincoln store remains in doubt, but survived the first round of closings last year.
The coronavirus epidemic has increased pressure on the company and closed 142 stores nationwide.
Although the company is still trading online, it has a large amount of stock that it cannot sell.
Reports say the company is concerned about possible legal claims from suppliers that have yet to be paid.
A Debenhams spokesperson told the BBC: “Like all retailers, Debenhams is making emergency plans reflecting the extraordinary circumstances of the day.
“Our owners and lenders remain very united and all the measures we can take will aim to protect the company in the current situation. “
The owners have already been informed that a number of restructuring scenarios are under consideration, which have “different results” for the company, the owners and the 20,000 workers at Debenhams.
Nigel Frith, senior market analyst at www.asktraders.com, said, “This has been on the cards for a while. Debenhams was already on very fragile ground before the coronavirus epidemic, 2020 was going to be his mark or his year.
“So far we are not quite in the administration stage, but it is certainly an option on the table to protect Debenhams from legal claims from creditors to whom she owes money during the coronavirus epidemic.
“Next week will be Judgment Week for Debenhams. “