Bathstore will continue to trade in administration while BDO tries to find a buyer for the struggling retailer.
The decision follows the failure of ongoing talks to find a buyer for the business.
BDO partner Ryan Grant said: “Despite significant investment into the business over the past five years, Bathstore has struggled to overcome the well-documented challenges facing the UK retail sector.”
Grant noted that Bathstore should be able to fulfil the majority of outstanding customer orders, even though all installation services have stopped.
The specialist retailer employs 531 people across its 135 stores and head office.
Bathstore was originally started in the 1990s by Patrick Riley and Nico de Beer. In June 2014, the company was sold as part of a management buyout led by chief executive Gary Favell.
The company is the latest retailer experiencing financial struggles, with several others closing stores or moving out of business.
Bathstore’s rival Better Bathrooms went into administration in March 2019 with the loss of 325 jobs.
According to figures filed with Companies House, Bathstore made a pre-tax loss of £22m on sales of £141m in the year to 31 July 2017.
The loss reflected exceptional costs of £11m, with a £5.4m write-down on the value of the company’s stores and leases.