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The Cardiff-based chain – which is estimated to have debts of £240m – has been holding re-structuring talks with its equity and bond holders.
But the Sunday Telegraph reported these discussions have reached deadlock and the chain could fall into administration today.
It claims the stalling point has been whether its banks, headed by Barclays and Royal Bank of Scotland – will agree to take a loss on the debts they are owed.
Last summer, KPMG was called in last summer to conduct a review into the business.
A spokesman for the company refused to comment about the mooted administration and insisted the discussions are ongoing.
Insolvency News has previously reported international law firm Hogan Lovells has been appointed to represent Peacocks’ lenders.
Allen & Overy is also understood to be acting on behalf of the borrower while Hilco – which worked on previous high-profile restructurings – also believed to be involved.
The retail chain – which is owned by The Peacock Group plc – employs more than 6000 people and boasts about 600 stores across the UK.
In December Peacocks was widely reported to be on the verge of closing some 200 stores but it has confirmed a 17% rise in like-for-like sales over Christmas.
However, it is believed that Bon Marche – the 200-shop retailer which is part of the Peacocks group – will be sold this week.
In the financial accounts for the year to March 2011, Peacocks declared earnings before interest, tax, depreciation and amortisation – or EBITDA – of £66.5 million.
The chain was founded by Albert Peacock in Warrington in 1884.
In 2002 the group acquired Bonmarche and, two years later, opened its first international store in Bahrain.
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