Little Chef will make an announcement imminently about the future of the roadside chain.
A spokesman for the company would not disclose whether it had reached a deal with an investor or was about to be put into administration, as expected, but said there would be "an outcome" shortly.
The 235-strong chain was bought by catering entreprenuers Lawrence Wosskow and Simon Heath for £52m in October 2005. Rumours have circulated since late December that it was struggling to meet rent payments after agreeing an £60.3m sale-and-leaseback deal with Israeli property group Arazim to fund a revamp.
Reports suggested that Little Chef was losing up to £3m per year.
The pitcure is further clouded by the fact that Wosskow pulled back from the day-to-day running of the business after suffering a heart attack in the summer.
By Tom Bill
E-mail your comments to Tom Bill here.