Topps Tiles’ like-for-likes plummeted 18.1 per cent in the 13 weeks to September 28, 2008.

Total sales dropped 13.3 per cent.

Topps Tiles said it is scaling back its store expansion plans. It trades from 317 stores in the UK, having opened three new stores in the period, and closed or relocated six. It also trades from 22 stores in Holland.

The retailer said there have been no significant changes in its financial position since the publication of its annual report in November 25, 2008.

In a statement, the company said: “The board remains confident in our resilient business model and we continue to manage the business with a prudent focus on cash and costs whilst maintaining our dedication to delivering outstanding value for money to all of our customers.

"We anticipate that a sustained period of weak consumer confidence will cause continued pressure across our industry, but believe that the Topps business is well placed to capitalise on the opportunities that this will present.”