Edinburgh Crystal, which dates back to 1867 and employs 360 people in Penicuik and in retail concessions across the UK, has been owned by Caledonia since 1990.
Caledonia finance director Jonathan Cartwright said: "Its a great product and there is a good management team. But its been a very tough time for them. From an investment perspective, it has not been a great performer."
Mr Cartwright said options for Edinburgh Crystal included acquiring another business to "partner" it, forming a joint venture with a complimentary business, recapitalising or closing it down.
But he would not comment on which is most likely to be pursued. Some sources said closure is the likely scenario.
Edinburgh Crystals published accounts show a pre-tax loss of £1.18 million in the year to March 2002 and losses of £1.03m in 2000-01.
In 2001, Caledonia examined the possibility of acquiring Perth-based Caithness Glass and merging it with Edinburgh Crystal. But the plan was scuppered