Little Chef could be taken over by a new owner "within days", according to reports.
The Sun newspaper said that EuroGarages was in talks to buy the brand from Kout Food Group.
Kout Food Group acquired Little Chef in 2013 for £15m. Currently there are 70 Little Chefs sites, down from a peak of nearly 450 in 2000.
EuroGarages has partnerships with Starbucks, Subway, Greggs and Burger King but does not operate its own brands.
In 2013, the Blackburn-based company took on leases of five former Little Chefs for conversion into coffee shops in a licensing arrangement with Starbucks.
Little Chef was unavailable to comment.