Devon TV chef John Burton Race's New Angel restaurant in Dartmouth, which was closed in November, is set to be sold by administrators.
The restaurant closed in November
As well as the Michelin-starred restaurant, the Angel Rooms B&B is also being sold.
The restaurant was closed while Burton Race was in Australia filming I'm A Celebrity Get Me Out of Here!
Burton Race, 50, and his estranged wife Kim, 42, have agreed to the appointment of administrators.
The restaurant, bought by Burton Race three years ago for £500,000, has total debts of more than £1.1m, administrators Begbies Traynor said.
Ian Walker of Begbies Traynor's Exeter office said: "It does not look as if there is any prospect of the restaurant re-opening under current ownership so our focus is on obtaining the best possible value for creditors from sale of the business and assets.
"But the restaurant has been successful in the past and there is every reason to believe it could be again under different ownership."
Mrs Burton Race closed the restaurant at the end of November - with the loss of 20 jobs - while her estranged husband was in the Australian jungle taking part in the reality television show.
The chef, who starred in the television series French Leave and The Return Of The Chef, left his wife and their six children in March.