Global business advisory firm AlixPartners was appointed administrator to the menswear group, which has 100 stores, 50 concessions and employs 1,184 staff.
Austin Reed, which has a store in John Lewis in Chichester, will continue to trade while AlixPartners seeks a rescue deal for all or part of the business.
The chain, which used to have a store at Gunwharf Quays in Portsmouth, blamed its woes on ‘cash flow difficulties’ and ‘challenging retail market conditions’.
Austin Reed, which was founded in 1900, has suffered years of falling sales as it has failed to attract younger shoppers.
The move deals another blow to Britain’s high streets following the administration of BHS on Monday, which has put 11,000 jobs at risk and threatened the closure of up to 164 stores.