Evans Cycles has become the latest retailer to hit by the tough trading conditions.
The bike shop chain is seeking a new buyer, with advisors asking potential bidders to make final takeover proposals by the end of next week.
Potential buyers for the group are thought to include Halfords, Cycle Surgery, JD Sports and Sports Direct.
The group has 60 stores across the UK and concerns first came to light after Sky News reported that the group was seeking an emergency cash injection from its lenders.
The bike shop faces increasing competition from online retailers including Wiggle, which is now theUK’s second biggest cycle seller according to analysts at GlobalData. The group also faces pressure from rising costs and challenging trading conditions, causing it to slip into the red in 2016.
The group is not yet considering a company voluntary arrangement (CVA), which would allow it to close stores and slash rent costs.
Evans Cycles will need to find £20 million to fund the rescue plan. Backers are unwilling to provide the money required.
CVA’s have become commonplace over the year, with retailers including Carpetright (LON: CPR), Mothercare (LON: MTC) and Homebase using the controversial insolvency process.
Tens of thousands of jobs have been lost on the high street in the past year and the number of CVAs requested has led to anger among landlords.