Tea and coffee seller Whittard is preparing to call in administrators as attempts to find a buyer falter, it has been reported.

The company, which has branches at The Mall Bristol centre in Broadmead, The Mall at Cribbs Causeway and the Sovereign Centre, Weston-super-Mare, is the latest high street retailer to struggle because of poor sales.

Founded 122 years ago, Whittard of Chelsea was bought by Icelandic investment company Baugur in 2005 for approximately £21 million.

But Baugur was hit by the collapse of Iceland's economy earlier this year, sparking fears over the future of its many high street UK retail assets.

A source last night said accountants Ernst and Young had been lined up as administrators, although neither Whittard nor Ernst and Young would comment last night.

The source said: "Whittard is still trading and it has not filed for administration yet.

"It's still talking to potential buyers."

"Ernst and Young have been appointed as administrators though should it go into administration."

"Whittard is struggling at the moment just like everyone else."

If the high street chain does go into administration "buyers could potentially still buy it, as a whole or part of the business".

It is believed that Whittard, which has 135 stores in the UK, received five bids from potential buyers but none were willing to meet the owner's asking price.

Baugur has investments in the supermarket chain Iceland, toy retailer Hamleys, jewellery chain Goldsmiths, and fashion chains Whistles and Jane Norman.

It also has money invested in department store House of Fraser.

In May it decided to offload the loss-making women's clothes retailer Mark One, as it "no longer fitted into the portfolio".