The directors of Toys R Us UK are preparing to appoint administrators for the ailing company early next week, national media reports say.
According to Sky News, the struggling business is likely to be declared insolvent on Tuesday morning - barring the emergence of a last-minute financial package to keep it afloat.
The firm's 3,200 workers face an uncertain future.
Toys R Us UK operates a store at Chesterfield's Spire Walk Retail Park
The company has been searching for a buyer for the last month after weak Christmas trading which has left it with little hope of paying a £15million VAT bill due on Tuesday.
In December, the business announced plans to shut 26 of its 105 UK outlets.