JD Sports has filed for court protection for its subsidiary Go Outdoors to keep creditors at bay as it mulls over what to do with the business.
The camping and hiking specialist's owner said a 10-day moratorium would ensure that creditors cannot take legal action without permission of the court.
Go Outdoors employs around 2,400 people across the UK, selling waterproof clothing, tents and other camping equipment.
It has suffered hugely during lockdown as all of its 67 stores were forced to close.
The business relies on its physical stores for most of its sales.
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The news follows reports over the weekend that JD Sports was on the brink of plunging its struggling subsidiary into administration.
On Monday, JD Sports said it is yet to hire administrators to take on the business.
"The group can confirm that it has considered a number of strategic options for Go and that Go's directors have lodged the notice in court," it said in a statement.
"This notice creates an immediate moratorium around the company and its property, which lasts for 10 business days.
"During this moratorium, Go's creditors cannot take legal action or continue with any existing legal proceedings against the company without the court's permission."
It added: "Administrators have not yet been appointed and the group will make no further comment at this time."
JD Sports bought the outfit for £112 million in 2016.
Two new electric scooter and electric bike stores are opening in Edinburgh and Glasgow this week.
Pure Electric said it is also developing "micromobility" in Scotland with potentila electric scooter trials.
The Somerset-based business it said is securing 17 jobs in the move.
The stores have been taken over from the Cycle Republic brand, which was owned by Halfords and faced closure.
e stores are employing local workers who are all former Cycle Republic employees, they will offer a full range of retail, repair and servicing facilities.
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Pure Electric said its stores will stock e-bikes, escooters and accessories
Pure Electric will be opening new stores in Edinburgh in Morrison Street and in Bothwell Street in Glasgow on Wednesday, as part of a growth program with nine other stores opening across the UK in the space of a few days, with European growth plans also being developed.
Peter Kimberley, chief executive of Pure Electric, said: “Our ambition is to be the largest e-bike and escooter retailer in Europe. We’ve got a fantastic team and demand is growing every day. Opening these stores is an important milestone for us.”
The business is the brainchild of former Hargreaves Lansdown pensions director Adam Norris, who launched his escooter business in 2018, before diversifying the company into e-bikes as well this year.
Mr Norris recently handed over the role of Mr Kimberley but continues to work in the business full time, focusing on its growth strategy, its customer engagement and developing corporate partnerships, including Cycle to Work.
Scotland's Transport Secretary has issued a plea for people to continue limiting their travel as face masks become mandatory on public transport from Monday.
As the country moves to phase two of its route map out of lockdown, Michael Matheson warned people to "leave space on public transport for those who need it most" amid experiencing some "major changes".
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He also urged employers to carefully manage their phased returning of staff to work with figures suggesting up to 55% of employees could travel to their normal workplace in this phase.
When Scotland was in full lockdown, the figure was just 30%.
It could also result in an increase in the number of passengers on public transport by around by a third from the current levels of around 225,000 per day.
ScotRail has also announced it will provide face masks for free at more than a dozen stations on Monday.
Meanwhile, further changes coming into effect on Monday include dental practices being able to offer in-person appointments to NHS patients in need of urgent care.
This change is only for treatments which do not create aerosol particles, such as happens when dental drills are used.
Scotland's chief dental officer Tom Ferris said: "Dental practices will be able to see NHS patients who are in need of urgent care for face-to-face consultation, using procedures which limit the risk of spread of using coronavirus such as non-aerosol-generating procedures.
"This will mean up to an additional 10,000 appointment slots available per day across Scotland."
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