PowerHouse, the independent electrical retailer, has been placed in administrative receivership after trade insurers withdrew cover from some of the company's suppliers.
The Bicester-based company, which employs 3,000 staff and has 223 stores, is to shed 813 jobs and 93 stores.
Nick Dargan, joint administrative receiver at Deloitte & Touche, told The Daily Telegraph: "We are carrying out a rapid assessment of the company's operations with a view to selling the business as a going concern.
"The store closures will take place on August 29."
The Telegraph reported that the insurers in question were thought to be Euler Trade Indemnity and NCM Girling.
The insurers, who give suppliers a guarantee that PowerHouse will pay its bills, are thought to have withdrawn cover due to doubts about PowerHouse's financial position and its ability to repay debts.
