Gaggia UK, the British distributor of professional coffee machines, faces being placed into administration.
Accountant firm RSM Bentley Jennison is understood to be lined up to act as the administrator for the privately-owned company.
In its last filed accounts Gaggia reported a loss of £520k in the year to March 2007.
The coffee machine distributor sells domestic machines for up to £1,200, and larger professional machines, which are used in cafes, for more than £4,000.
Gaggia UK is separate from the Gaggia brand owner Saeco, and was not affected by the recent purchase of Saeco by electrical goods maker Philips.
Gaggia UK's customer service phone line has not been in operation recently, with a recorded message, which informs that Gaggia can not take any orders and will contact customers with information about repairs.
Milan-born Achille Gaggia invented the Gaggia coffee machine in the late 1930's, and the first domestic machine, the baby Gaggia, was launched into the Italian market in 1977.
