Bathstore owner plumbing and heating group Wolseley is considering selling the bathroom retailer.
The chain has been identified by its parent as one of 19 businesses that have to be sold unless their performance improves, according to reports.
Bathstore, which is the only retail business among a string of trade outlets run by the FTSE 100 company, has 160 stores and sells bathroom suites as well as hardware including taps.
Although figures for the most recent financial year have not been revealed, in the 12 months to the end of July 2009, Bathstore closed 19 branches, and sales fell by 26% to £106.8m. It made an operating loss of £11.7m, compared with a profit of £11.5m the year before.