Shop Direct Group could axe up to 1,150 jobs after the business was forced to close its call centre in Crosby, Liverpool.
Shop Direct Group said it was entering a 90-day consultation period with its staff.
Shop Direct Group chief executive Mark Newton Jones said: “We recognise that this will be a difficult time for those members of our team impacted by today’s announcement. We do hope to relocate 250 of them and we will do everything we can to support those affected.”
He added: “Our business is changing because the way our customers choose to shop with us is changing. We anticipate that 70 percent of our sales will be online by 2010/11 and, therefore, the future of our business is online-led. We are a strong and growing business. In order to maintain this growth, we need to continue to adapt and change to the needs of our customers.”
Earlier this month rival mail order firm Otto UK, which has been rebranded to Freeman Grattan Holdings, entered into consultation with 3,800 of its staff. It is unclear how many jobs will be lost.