Private equity group Gordon Brothers Europe said 32 jobs will be cut at the chain's Uxbridge headquarters, while 264 stores are at risk as a buyer is sought.
The chain plunged into administration in January, before being bought by Gordon Brothers in March. At the time of its initial collapse the group had 528 stores in the UK employing 4,190 staff.
Gordon Brothers said its turnaround attempts for the historically loss-making company coincided with a patch of poor trading across rental and retail sales.
It said stores will continue trading but some may need to close if a buyer cannot be found.