UPDATED: Furniture chain Lombok has filed an intention to appoint an administrator and is danger of going bust in the next few days.

Sources said administration “was an option” but not a foregone conclusion as the retailer battles punishing trading conditions. It is not known which administrator has been lined up.

Lombok, which has already collapsed into administration in 2009, has closed three further stores in the last week, including high profile shops in Bluewater and the Kings Road in London.

It has also closed it shop in Chiswick.

Earlier this month Retail Week revealed that the chain had closed six of its 12 stores , and at the time reported that the retailer was mulling the closure of more.

Lombok will keep its flagship on Tottenham Court Road and its concession in House of Fraser on Oxford Street. The future of its Batley store remains unclear.

A source close to the retailer said Lombok is “repositioning” itself to be a more online-focused business, meaning it will now operate from a reduced number of physical stores.

A Lombok spokeswoman told Retail Week: ‘Lombok is exploring all options as part of its restructuring and fully intends the Lombok brand to continue trading with a focus on its successful online offering and key flagship stores.

“In order to ensure the on-going viability of the business in the context of challenging trading conditions in the retail sector, Lombok is undergoing essential restructuring. As a result, Lombok has this month closed nine of its stores.”

However, the retailer will open a second concession in a House of Fraser store, in Birmingham.

Lombok is the latest in a string of retailers to embark on store closure programmes, including Mothercare, Thorntons, Game and HMV.

Lombok had 19 stores before it was bought out of pre-pack administration in July 2009 by Privet Capital, which initiated a turnaround of the business, hiring Stuart Lewis as managing director and Martin Toogood, former chief executive of collapsed furniture chain Ilva, as chairman. Five stores were closed at the time of the purchase.

In the year to August 1 2010, Lombok revealed a profit before interest, tax and exceptionals of £1m compared with a loss of £1m the previous year. Like-for-likes grew 7%.