Croydon Village Outlet has gone into administration.
Administrators were called into the troubled department store this week after Metro Outlet Limited, the company that runs it, received a winding-up petition from creditors earlier this month.
But is is claimed a new owner is already preparing to take over North End store.
Staff today told the Croydon Guardian managers had informed them the store had "had two weeks left".
The employees said they had been told to reclaim unpaid wages from the Government's National Insurance Fund.
A senior figure at the store, who declined to reveal his name or position, this afternoon confirmed it had gone into administration but added a buyer was already lined up and that the store would not close.
He said an announcement about the takeover would be made in the next few days.
The development comes after it emerged that debt collectors are chasing more than £1m that Croydon Village Outlet owes to dozens of creditors.
It is understood one of the creditors has served Metro Outlet Ltd with a winding-up petition after it failed to pay debts.
If the petition is successful, the company would be put into liquidation by a court.