Oak Furnitureland is preparing to permanently axe 27 showrooms and 163 jobs in another blow for the high street.
The hardwood chain announced its latest restructuring plans on Monday, a month after it was rescued from collapse in a pre-pack administration deal.
It said it has now earmarked 27 of its 105 stores for closure as trading conditions "continue to be challenging".
On June 15, the retailer was acquired by global investment manager Davidson Kempner Capital Management, following a sales process by Deloitte.
However it said adverse trading conditions as a result of the coronavirus lockdown will result in store closures.
A spokesman said that business has "stabilised" since showrooms have reopened, however the retail environment remains "testing".
Consultations have started with landlords of these stores, while talks have also started with the 163 employees at risk of redundancy.
Oak Furnitureland chief executive officer Alex Fisher said: "The current proposal to close some showrooms forms part of a company-wide review that we are undertaking as a business.
"We are committed to driving forward a plan for our future growth, and although this has been a difficult decision, it is the right one for the business in these uniquely challenging times.
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"We are confident that the decision will ensure we remain a competitive and dynamic choice for our customers.
"I would like to say thank you to all of my colleagues in every department who have been endlessly committed and patient during this process."
Oak Furnitureland, which was founded in 20016, has 105 stores in total.
The move follows several other UK retailers that have announced redundancies in recent weeks due to the pandemic.
John Lewis announced earlier this month that it would permanently close eight stores, putting 1,300 jobs at risk.
Boots has also revealed plans to cut 4,000 jobs.
