Topps Tiles’ loss-making Dutch business is to close after the retailer decided not to provide further support and funding.

The retailer said that it has proved impossible to overhaul its operations in the Netherlands, comprising 12 stores and accounting for 4% of group revenue.

Topps Tiles disclosed: “Restructuring of the business on a financially sustainable basis has not been successful and the business has faced increasing challenges as financial performance has declined, in part driven the difficult economic climate.

“The business has been loss-making since 2008 and current trading is significantly behind revised financial targets set by the local management team.”

The closure will result in a non-cash writedown of about £1m.

Topps Tiles, which last month reported a 2.2% like-for-like sales rise at its core UK business in the first seven weeks of the financial year, said sales in its domestic market “have continued to follow an encouraging trend”.