Wilko said it has filed a notice of intent to appoint administrators, putting around 12,000 jobs at risk.
The British high-street retail chain has around 400 stores and is known for selling affordable homeware and household goods.
Chief executive officer Mark Jackson said: “While we can confirm we’ve had a significant level of interest, including indicative offers that we believe would meet all our financial criteria to recapitalise the business, at present, we don’t today have an offer that provides the necessary liquidity in the time we have available, given the mounting cash pressures we’re faced with.
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“Unfortunately, with this in mind, today we’re having to take the difficult decision to file a notice of intention.
“We’ll continue to progress discussions with interested parties with the aim of completing a transaction which preserves the business and will encourage those interested parties we’re in discussions with to move as fast as possible.
“We continue to believe that our robust turnaround plan, with significant re-stabilisation cost savings in progress, will deliver a profitable Wilko and maximise the significant opportunities that we know exist.”
Taking to Twitter, one disappointed shopper wrote: "Sorry, I REFUSE to live in a world without Wilko.
"I'm still stinging from Woolworths and that's been over a decade."
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Another added: "What am I going to do if Wilko collapses?
"It has always been my go to for bit and pieces. Also home stuff.
"How can they disappear from the high street? I love @LoveWilko."
A third hopeful commented: "Somebody please save Wilko. It’s one of the best places to mindlessly walk around and inspect Autumn-themed homeware."
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"Hope Wilko can survive - it was always the first place you went when you moved into a new flat," a fourth said.
Someone else added: "Oh no! Bloody love Wilko. Been a staple in my life since student days. Be awful to lose such an everything store."
The company was founded back in 1930 after JK Wilkinson opened his first store in Leicester.
Wilko were also known for their charity work and in the last 10 years, they raised £10 million for 1000 of their charity partners.
They also supported team members with £2.4 million from their employee benefit trust fund.
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"Over the years, we’ve found 1,000s of ways to help raise funds for charities and local groups. From baked-bean baths to bake-offs, we love to get involved. As well as supporting local causes, we’ve always worked with charity partners to help raise millions for fantastic causes," the company said.
Anish Vij