Axminster Carpets has filed a notice of intention to appoint administrators, with the move potentially putting 90 jobs at risk.
The business, based in the Devon town of Axminster, says it is "working to find buyers for the business as a going concern."
A spokesperson said: "We have filed a notice of intention to appoint administrators which provides the company with the required protection as we work towards a going concern solution.
"As part of the restructure that we confirmed last year our focus remains on securing a sustainable future for Axminster Carpets.
"This is important for the local town, our employees, customers, suppliers and consumers who value the quality of craftsmanship."
, adding that insolvency firm Duff & Phelps is said to have been put on standby to handle the process if the "frantic bid" falls through.
Thomas Whitty began making Axminster method carpets in 1755. Original Axminster Carpets could be found in Chatsworth House and Brighton Pavilion as well as being bought by King George III and Queen Charlotte.
Last year the as being a core factor in the decision.
Most Read
A statement issued by its managing director, Jonathan Young, was issued to staff on September 10 2019.
It read: "Axminster Carpets has been fundamentally repositioned during the last couple of years during which time the business has seen good growth in sales, launch of new products, improved customer service and further development of its brand.
"The current market outlook is however more challenging with the sustained uncertainty relating to Brexit leading to a lack of consumer-spending confidence.
"Axminster Carpets is a proud British manufacturer which fully recognises the essential part that its employees play in delivering such exceptional products.
"The company is therefore working very closely with its employees whilst it implements a process to streamline its operations in order to make sure it is positioned for a sustainable future.
"The company is therefore asking its employees if anyone would like to take the opportunity of voluntary redundancy which may work for both parties.
"The company would like to take the opportunity to express regret at having to make such difficult changes.
Don’t miss
"We would like to thank those employees who are impacted by these changes and are sure that their dedication and that of the remaining workforce will ensure the ongoing production of great products whilst the company pushes into new areas."
In 2012, the company was awarded a Royal Warrant for the supply of goods and services to the Royal Household at Buckingham Palace.
Other carpets supplied by the firm have adorned train carriages and aircraft over the years.