Last week ragtrader.com.au broke news on two companies in voluntary administration - now one is preparing to slash its store network by half.
Brown Sugar, trading under Brand Directions, was placed into voluntary administration on March 28.
Brand Directions director Winfred Fan has revealed he expects half of the brand's store network to be culled.
Five stores will close this week, leaving the company with a 14-store footprint.
The closures span Victoria, Western Australia and New South Wales.
Fan said the company could not reach agreements with suppliers, with not enough stock to see the retailer to the end of winter.
He said he was confident the company would trade on through a Deed of Company Arrangement (DOCA).
The process is expected to take six to seven weeks if creditors accept the proposal.
It is understood letters to creditors will be issued today, with a first meeting to take place within the next week.
The DOCA will be voted on at the second meeting of creditors, within three to four weeks of the first meeting.
This is the second time Brown Sugar has entered administration, with Brand Directions salvaging the brand in 2011.
Fan said he hoped creditors would approve the DOCA to ensure the survival of the brand, established in 1975.
"The market is tough but the work involved in reviving the brand was tougher than we thought; a lot longer and more money than we expected."
Head office staff had remained "more or less the same" with stores assessed on a daily basis.