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Babycare retailer Mothercare said it plans to call managers into the UK business of the company with the problem, putting 2,500 jobs at risk.
Mothercare said 79 UK stores were "not able to return to the group at a level of sustainable structural profitability and profits."
"In addition, the company cannot continue to meet Mothercare UK's ongoing cash needs."
It said stores will continue to trade normally for the time being.
Also affected are Mothercare Business Services Limited (MBS), which provides certain services to Mothercare UK.
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Mothercare has already been able to close 55 stores through company volunteering (CVA).
"This is the intention to appoint managers in relation to Mothercare UK and MBS, which is a necessary step for the group's restructuring and refinancing," said Mothercare.
"The plan is well underway and is being finalized for execution soon. It will be announced later."
Only 500 of the jobs at risk are full-time with 2,000 part-time jobs, including the headquarters role.
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Mothercare is looking for UK store buyers, but so far no success.
The company also operates on over 40 overseas territories and is not under management.
Mothercare said the company's international business generated revenues of £ 283 million in the fiscal year up to March 2019 and a drop of £ 36 million for UK retail.
High street retailers are struggling with rising consumer income, increasing online shopping, rising employee costs, rents and business costs.