Fried chicken and waffle chain Bird is exploring restructuring options in a bid to avoid administration.
According to the Evening Standard, the group is working with BM Advisory and has filed a notice of intention to appoint administrators.
Co-founder Paul Hemings, confirmed the report, after saying the bank funding market for small businesses, particularly restaurants, had “effectively shut down”.
He added: “We remain optimistic and confident that a good solution can be reached very soon.”
Bird is run by two Canadians, former Credit Suisse investment banker Hemings and his wife, chef Cara Ceppetelli. It launched in London’s Shoreditch in 2014, serving 100% free-range chicken from a single British farm and has sites in Islington, Stratford and Camden.