Wickes owner, Travis Perkins, the UK's biggest builders merchant, is closing nearly 30 shops and possibly putting 600 jobs.
The company, which employs 28,000 people across its 2,060 stores, said it was taking the steps due to an "uncertain UK outlook" for next year.
Profits will also be lower than expected this year due to weak sales in its plumbing and heating division.
The firm is closing branches of Travis Perkins, Benchmarx, BSS and PTS, but not Wickes.
Chief executive John Carter said : "It is still too early to predict customer demand in 2017 with certainty and we will continue to monitor our lead indicators closely. Given this uncertainty we will be closing over 30 branches and making further efficiency driven changes in the supply chain, resulting in an exceptional charge of £40-50 million this year."
The 600 affected workers have been told of the changes, while the firm is also closing 10 smaller distribution centres and writing off IT equipment.
Shares in the company fell 5 per cent in early trading today, and are down more than 22 per cent since June.
Mr Carter added: "General Merchanting delivered a solid result in the third quarter alongside very strong performances in our Consumer and Contracts businesses where we materially outperformed our markets.
"Our Plumbing & Heating results were disappointing and while market conditions have worsened, we are not satisfied with our performance and will commence reviewing these operations.
"Adjusted EBITDA will slightly below current market consensus of around £415 million".
0 comments: