Around 5,400 jobs were under threat today after a deal to rescue high street shoe chains PriceLess and Barratts was rejected.
Parent company Stylo said it was "disappointed" to report talks with creditors and landlords aimed at retrieving the stores from administration had failed.
Stylo will be placed into administration as a result.
This week Stylo chief executive Michael Ziff said if the proposals were voted down it would "threaten the employment of some 5,400 people".
PriceLess and Barratts fell into administration on 26 January.
Stylo is expected to formally apply to be placed in administration today, under Deloitte.
The company had hoped creditors of PriceLess and Barratts would agree to rescue the business from administration and place it in a company voluntary arrangement (CVA) - a deal which would have given the company breathing space in its debt repayments.
Daniel Butters, Deloitte partner and joint administrator, said: "Following the meeting and vote yesterday we confirm that creditors and landlords have not accepted the CVA proposals.
"As a consequence we will now seek to achieve a sale as a going concern to preserve as many jobs as possible.
"We are in focused talks with interested parties in an effort to deliver a swift solution."
Stylo operates 400 high street shoe stores in the UK under the Barratts and PriceLess brands.
Deloitte said the firm employs a total of 5,450 staff.
In a statement, Stylo said: "The board is disappointed to report that the creditors and landlords did not approve the CVA proposals."
It added Deloitte would be appointed to the firm "as soon as possible".
A spokesman for Stylo said: "There is no guarantee what is going to happen now.
"With the companies in administration they are going to have to get whatever value they can."
Stylo was founded in 1935 and has a headquarters in Bradford, Yorkshire.Reuse content