THE slowdown in high street spending hit discount clothing chain Matalan yesterday as it posted a fall in sales and warned of a tough future.

Like-for-like sales were down 6.3 per cent in the 26 weeks to August 27, which led to pre-tax profits falling to £30.7m from £42.5m in the same period last year.

Matalan warned that in the past nine weeks, like-for-like sales were down as much as 10.6 per cent as warmer weather hit demand for winter clothes, such as coats and knitwear. The same nine-week period last time saw the strongest growth of the year for Matalan.

Chairman John Hargreaves said: "Trading conditions continue to be difficult and there is little evidence to suggest this will improve in the near term."

The Lancashire-based company reported a fall in first half sales in September and cut 300 jobs across its 190 stores as part of a restructur-ing programme to help save £15m a year.

About 15 jobs were cut across the region at stores including Consett, Darlington, Durham, Gateshead, Newcastle, Hartlepool, Stockton, Middlesbrough, Scarborough, Knaresborough and York.