More than 1,000 workers face an uncertain future after Carphone Warehouse announced it was pulling the plug on its electrical stores division.
The company has launched a consultation about closing its 11 Best Buy UK run shops as it shifts its focus to selling more electronics goods through its Carphone Warehouse outlets.
The firm said it hoped to find the ‘‘large majority'' of the 1,100 staff roles elsewhere within the organisation.
Yesterday the firm revealed that Best Buy UK made operating losses of £46.7 million in the six months to September 30, up from £28.8 million in the previous half-year.
Best Buy UK operates the so-called ‘‘big box'' stores across the South East and Midlands, which were launched to great fanfare in 2009, and were intended to shake up the electronics market with cheaper prices and better customer service.
But consumer electronics has been one of the hardest-hit sectors during the downturn as the squeeze on household incomes has seen shoppers turn their backs on perceived luxury items.
The company said the market had suffered as a result of the economic downturn, online competition and the growth of new products, such as smartphones and tablet computers.
In addition Carphone has been focussing on selling more electronics such as tablet computers and smartphones at its 805 stores in the UK, particular at those under its Wireless World format.
Best Buy Europe chief executive Andrew Harrison said: ‘‘The technology world has changed substantially since 2008 and we are confident we will best serve our customers by investing in a single brand and format rather than two.''
The business, which launched as part of a joint venture with US-based retail giant Best Buy, has invested heavily in marketing and promotional activity in a bid to get the brand off the ground, but has seen widening losses.
Carphone originally intended to open up to 200 Big Box stores in Europe by 2013 but this goal was reduced to 100 in June. The stores' future has since been under review.
It expects further losses of between £25 million and £30 million before the shops are closed by the end of March.
The cost of closing the stores will be up to £75 million, while write-downs of £45 million in the value of the business are also expected.
Best Buy currently has Big Box stores in Aintree, Bristol, Croydon, Derby, Enfield, Hayes, Hedge End, Merry Hill, Nottingham, Rotherham and Thurrock.
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