Home Retail Group has approached restructuring specialists to review the store portfolio of its DIY chain Homebase, according to The Times.

The retailer is under pressure to cut costs as the DIY sector continues to deteriorate in the downturn.

Following the collapse of MFI last year, Home Retail Group made inquiries about a restructuring of Homebase’s store portfolio, although no specialist has yet been appointed.

Yesterday Homebase revealed its like-for-likes plummeted 10.2 per cent over the Christmas period, while sales at Argos dropped 7.8 per cent.

Home Retail Group chief executive Terry Duddy has admitted there will be some job cuts at Homebase, but denied there would be any mass redundancies.

He said: “There will be job cuts, but what there won’t be is a huge swinging axe that comes through the business.”

Last October Home Retail Group wrote down£542 million against Homebase’s value, pushing the group into a pre-tax loss of£437 million.