Discount chain Poundworld is pursuing a restructuring plan that could see it shut around a third of its stores, putting more than 1,500 jobs in doubt.
The company is considering a so-called Company Voluntary Arrangement (CVA), an insolvency procedure which would allow it to slash its rents and close stores.
Under the plans, Poundworld could close 100 of its 355 stores.
The company has a store in the Rivergate Shopping Centre in Peterborough, but it is not known if these will be affected.
Rising costs and a squeeze on consumer spending has forced several household names to pursue CVAs this year, including New Look, Byron, Prezzo and Carpetright.
Poundworld, which is owned by private equity firm TPG Capital, is expected to announce the terms of the CVA next month.
Landlords will then vote on whether to approve the proposal. All of the major CVAs proposed this year have been rubber-stamped by landlords.
The announcement comes after a string of high street chains announced they would be closing stores across the country.
Last week Toys R Us closed its Portsmouth store, and there have also been announcements from Prezzo, New Look and Carpetright.