Rights to some children’s brands could be sold off, with media company Chorion perhaps facing administration.
The company, which owns such brands as Paddington Bear, Noddy and the Mr Men, is under pressure from lenders to pay back money.
It has been suggested that financial services firm Deloitte is lined up to handle a possible administration by the company's current owner, private equity firm 3i.
Chorion is reported to have a total debt of about £70 million.
The chairman and deputy chairman of the company, Lord Alli and William Astpr, both tendered their resignations last week. It was reported that Alli had been trying to restructure the company over the past few months but did not gain the support of backers.