The retailer reported a 17 per cent slide in net revenue for the six weeks to December 7 and expects to post a trading loss of£4 million, before one-offs and exceptionals, in the year to December 28.
New chief executive Mike Hancox has reviewed the business since starting at the beginning of November and will axe approximately 70 full-time jobs and phase out the majority of temporary staff by the end of the year.
The job losses will create an annual saving of£1.5 million but will incur£400,000 redundancy costs in the current year.
Hancox said: “We are taking radical action to improve sales, efficiency and reduce costs. We remain focused on generating improved returns from our home shopping and internet channels to achieve the best possible results in the current economic climate.”
Finance director appointed
Ideal also disclosed the appointment of Ian Jebson as finance director.
Jebson, who replaces interim incumbent Steve Mensforth, starts at Ideal on March 1, 2009, and joins from shirts specialist Charles Tyrwhitt.