Blue Inc has hired professional services firm Begbies Traynor to find a buyer in a bid to secure a new cash injection.
The chain is seeking new owners to take control of the business “in the short term”, according to Sky News.
The long-struggling retailer has been through multiple restructuring processes over the years to try and secure its future.
In 2017, it successfully implemented a CVA after falling short of capital by just £3m. The retailer needed to both buy more stock and pay debts including £1.8m of rent in arrears.
That came just months after suppliers which the retailer had been in debt to converted their debts to equity to engineer a takeover plan.
The retailer is the latest in a long line to battle for survival this year. Businesses including New Look have pursued CVAs while many others such as Maplin, Toys R Us and Poundworld have all entered administration.