Dixons Group is planning to close 106 "under-performing" branches of its electrical retailer, Dixons, within the next three months.
The company blamed the decision on "disappointing" results from the stores, which have failed to increase gross margins over the past year.
This financial performance was contrasted with the results from Dixons Group's other UK retailers, Currys, PC World and The Link, which have delivered "good progress" since the start of the year.
The costs associated with the proposed closure programme are expected to be £48m and will be taken as an exceptional charge within the 2003/04 financial year. The cash costs of exit are anticipated to be £22m.
Dixons Group said in a statement: "The group is currently reviewing how best to develop the Dixons format for the future.
"As part of that review the group plans to close 106 under-performing Dixons stores, representing around two per cent of the group's trading space, within the next three months."
The company is currently consulting staff who may be affected by the closure, and stated that it expects to redeploy a "significant number" in other group stores.
Tests of new format Dixons stores will continue as part of the profit improvement plan for the chain.
John Clare, Dixons Group chief executive, said in a statement: "Following a prolonged period of disappointing trading in our smaller Dixons stores, we have decided to close operations in 106 locations.
"We expect to redeploy a significant number of affected employees elsewhere in the group."
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