Homebase is set to close nearly a fifth of its 241 stores, with media reports saying restructuring group Hilco - which acquired the DIY chain for £1 in May - is expected to confirm plans for a Company Voluntary Arrangement (CVA) on Tuesday.
Hilco, which bought the troubled chain from Australia's Wesfarmers, is expected to shut 42 stores, putting about 1,500 jobs at risk, according to the BBC News website.
A total of 17 Homebase stores have already closed this year and the business has also cut 303 jobs at its head office in Milton Keynes, it added.
Wesfarmers bought Homebase in 2016 for £340mln and planned to rebrand the chain with its Bunnings brand.
However, the Australian company struggled to turn the business around and admitted to making a number of "self-induced" blunders
Restructuring experts at Alvarez & Marsal will carry out the CVA, which will require the support of Homebase’s landlords, the BBC report said.
CVAs have been adopted by a number of retailers in recent months, including Carpetright PLC (LON:CPR) and Mothercare (LON:MTC), as high street stores group start to buckle under the weight of property costs combined with reduced footfall as online sales grow.