Sky News reports that the chain, which operates 660 sites across the UK, is examining a CVA as an option to reduce its rent bill and exit loss-making outlets.
A final decision about a CVA is yet to be made, although sources say one is expected in the coming weeks.
Last month it emerged that the business had hired KPMG to help negotiate rent cuts with landlords and review options relating to its property portfolio.
The coffee chain currently employs about 5,000 people across its UK portfolio.
More than 90% of the chain's outlets have reopened since the end of lockdown in June, with about 30 remaining closed for the time being.
A spokesman for the company said in September that it had been a difficult period since lockdown measures were introduced by the Government, and that the group was working incredibly hard to navigate its way forward.
The slower-than-expected return to offices in city centres has had a severe impact on many of Caffe Nero's rivals.
Last month it was reported that fellow high street coffee chain Costa had warned that up to 1,650 jobs across its estate were at risk of redundancy as a result of the ongoing impact on trade caused by the Coronavirus pandemic.
Meanwhile, earlier this month Pret A Manger announced it was to close a further six sites and cut around 400 more jobs after its recovery was hampered by a tightening of Coronavirus restrictions and rising case numbers.
The sandwich chain had already shuttered 30 of its branches and made 2,800 staff redundant as part of a major restructuring of the business.
