Around 5,000 agents working for catalogue firm Kleeneze face being shown the door after the 95-year-old business collapsed.
And around 140 staff at its HQ in Accrington and its warehouse in Heywood also risk losing their jobs now the firm has ceased trading and been plunged into administration.
Kleeneze sold cleaning products, gifts and homewares through a network of self-employed door-to-door agents.
The blow comes just over a year after a major restructure following a £1.2 million funding deal with the Greater Manchester Combined Authority (GMCA) to consolidate its logistics and distribution operation in Heywood and create up to 100 jobs.
David Acland, joint administrator at FRP Advisory, said: "Kleeneze has performed well over the years and has a strong network of independent sales distributors.
"Unfortunately, tough trading conditions have resulted in the business entering administration.
"The business suffered from operational issues after its move to the Heywood distribution site earlier in 2017.
"There were logistics challenges and IT issues that took six months to resolve, which resulted in significant lost sales."
A buyer is being sought for the business but FRP warned that 69 jobs at its HQ in Accrington, Lancs, and 71 at the warehouse in Heywood, 15 miles away, are in jeopardy.
Kleeneze dates back to 1923 when founder Harry Crook set up in a broom cupboard in Bristol selling simply brushes.
Currently owned by Dallas-based holding company JRJR Networks, it was at one stage linked to Christmas hamper firm Farepak, which collapsed in 2006.
The last accounts filed for Kleeneze show a loss of £3.3million in 2016 on turnover of £21million.
Usdaw is seeking talks with FRP.
Annette Bott, from the union, said: "This is clearly a difficult and upsetting time for the 140 staff based in Accrington and Heywood.
"We are pressing the administrators to find a buyer for the company who will protect jobs and keep the business going.
"In the meantime we are providing our members with the support, advice and representation they need.”