Fashion chains Peacocks and Jaeger have fallen into administration, putting more than 4,700 jobs and almost 500 shops at risk.
It comes after owner Edinburgh Woollen Mill failed to find a buyer for both businesses.
No redundancies have been announced yet and no stores closed.
Tony Wright, joint administrator of the business from FRP Advisory, said talks with potential buyers were still going on.
“Jaeger and Peacocks are attractive brands that have suffered the well-known challenges that many retailers face at present,” he said.
“We are in advanced discussions with a number of parties and working hard to secure a future for both businesses.”