Sir Philip Green is preparing to launch a company voluntary arrangement (CVA) restructuring of his Arcadia retail empire.
The plans, which are expected to be announced by the end of the week, would see landlords handed a shareholding of more than one-third of the business, Sky News reported.
Arcadia, which owns high street brands such as Topshop, Burton and Dorothy Perkins, would shutter dozens of stores, seek rent cuts and lower pension scheme contributions if the proposals get the green light.
Under the plans Green would provide more than £50m to the retailer either in the form of a secured loan or as equity, which is being pushed for by other creditors who also want the businessman to increase the amount of money he provides to the turnaround plan.
Arcadia's landlords have demanded that store owners are handed a stake of at least 40 per cent of the business.
In April Green appointed restructuring experts Jamie Drummond Smith, a former partner at Deloitte, and independent restructuring advisor Peter Bloxham to the board as interim chairman and interim non-executive director respectively.
The retail tycoon lost his billionaire status earlier this month after seeing his personal fortune halve over the course of the last year, which has seen the businessman battle reports of workplace bullying and sexual harassment.
Green and his wife Tina fell from joint 66th on the Sunday Times rich list to 156th this year as mounting pension debts and tough trading conditions blighted his high street empire.
An Arcadia spokesperson declined to comment.