Like other stores, Matalan has been hit by the retail slowdown

The Lancashire-based firm said it would cut an unspecified number of jobs as part of a cost-cutting drive.

The company warned earlier this year that it would seek greater efficiencies after seeing a 9% fall in like-for-like sales in March and April.

Consumers are tightening their belts, making life difficult for retailers.

Staying competitive

The impact of a series of interest rate rises in 2004, a slowing property market and fierce competition at every level of the retail market is forcing retailers to find savings to remain competitive.

I can confirm that Matalan is carrying out a restructuring that will result in job losses Matalan spokesperson Bargain-hunters becoming more cautious

Matalan, which has 190 UK stores and whose head office is at Skelmersdale, said it could not put a figure on how many jobs would be lost ahead of a consultation exercise with staff.

The Sunday Telegraph reported that hundred of jobs were likely to go.

"I can confirm that Matalan is carrying out a restructuring that will result in job losses," a company spokesperson told the Press Association.

"However, it is impossible to be specific until the consultation period is completed."

Matalan, which employs about 17,000 staff, made a pre-tax profit of �83.5m last year.