The 132-store Whittard of Chelsea chain of specialist tea and coffee retailers, also known for its quirky tea pots and mugs, was on Tuesday facing administration as talks between Baugur, its Icelandic parent, and an unnamed trade buyer continued.

It is likely that Whittard would go into administration under a “pre-pack” deal where a buyer is lined up in advance. Ernst & Young have been appointed to handle the administration.