Supersymmetric and non-supersymmetric deformations of large $N=(4,4)$ SCFTwith superconformal symmetry $D^1(2,1;\alpha)\times D^1(2,1;\alpha)$ areexplored in the gravity dual described by a Chern-Simons $N=8$, $(SO(4)\timesSO(4))\ltimes \mathbf{T}^{12}$ gauged supergravity in three dimensions. For$\alpha>0$, the gauged supergravity describes an effective theory of themaximal supergravity in nine dimensions on $AdS_3\times S^3\times S^3$ with theparameter $\alpha$ being the ratio of the two $S^3$ radii. We consider thescalar manifold of the supergravity theory of the form $SO(8,8)/SO(8)\timesSO(8)$ and find a number of stable non-supersymmetric $AdS_3$ critical pointsfor some values of $\alpha$. These correspond to non-supersymmetric IR fixedpoints of the UV $N=(4,4)$ SCFT dual to the maximally supersymmetric criticalpoint. We study the associated RG flow solutions interpolating between thesefixed points and the UV $N=(4,4)$ SCFT. Possible supersymmetric flows tonon-conformal field theories are also investigated. Additionally, ahalf-supersymmetric domain wall within this gauged supergravity is obtained.