Sources said that some shops have been closed and that redundancies had been made at its head office last night.
Staff are expecting to be told this afternoon whether the business will be placed into administration.
The womesnwear chain, which caters for the plus-size market, was bought out of administration in February last year by an unknown investor.
The retailer has 24 shops and 50 concessions in department stores including House of Fraser and Debenhams.
It has been trying to secure funding to keep the business going but has run into difficulties in a tough trading climate.
Elvi could not be contacted for comment.
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