ADMINSTRATORS acting on behalf on two high street stores hope to sell the companies as a going concern.
Footwear chain The Famous Brunswick Warehouse and clothes retailer What Everyone Wants have been placed in the hands of administrators Ernst & Young.
Both will continue to trade as efforts to sell the business get under way.
What Everyone Wants has 2,500 staff and 130 shops with seven stores in the region, including Darlington and Gateshead.
The store said sales had been hit in recent months by growing competition on the high street.
Last year, Glasgow-based What Everyone Wants recorded a turnover of about £95m.
Ernst & Young has appointed corporate restructuring partners Tom Burton, Colin Dempster and Garry Wilson to oversee the sale.
Mr Burton said: "What Everyone Wants has come under mounting pressure from tight margins and heavy competition in the discount retail sector which has impacted on sales.
"However, we are hoping to sell the business as a going concern and, therefore, will continue to trade the stores."
An Ernst & Young spokeswoman said it was hoped that job losses could be avoided if the company was sold as a going concern.
Newcastle company Brunswick employs 740 staff across Northern England and Scotland, with 67 stores including those in Hartlepool and South Shields.
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