Nearly 2,000 Homebase staff across the country could be axed after the DIY chain's Australian owner launched a review of the business that may see up to 40 stores shut.

Wesfarmers, which owns Homebase's parent firm Bunnings UK, said on Monday that trading at the chain has been 'poor'.

Wesfarmers managing director Rob Scott said: "The Homebase acquisition has been below our expectations which is obviously disappointing.

"In light of this, a review of Bunnings UK has commenced to identify the actions required to improve shareholder returns."

The group later confirmed that between 20 and 40 of the worst performing Homebase stores could close down in the latest sign of distress on the British high street.

Homebase operates from 250 stores and employs 12,000 in total in the UK.

It has two shops in Oxford, at Seacourt in Botley and Horspath Driftway in Cowley, and branhces in Banbury and Abingdon.

The store at Seacourt Retail Park is already due to be replaced by Marks and Spencer after planning permission for a M&S Food Hall was granted in December.

It has not been confirmed which stores are at risk of closure.

Poor trading at Homebase is expected to drag Bunnings into an underlying loss of £97 million for the first half of the year, Wesfarmers confirmed.

"We need to address underperformance in our portfolio that is detracting from positive performance in other areas, and the announcement today sets out decisive actions to achieve this," Mr Scott added.

Bunnings acquired Homebase in 2016 in a £340 million deal and has been attempting to reposition the brand.

As well as revamping the stores and slashing prices, Homebase is in the process of being rebranded as Bunnings.

The potential store closures come following a miserable January for the high street, which has seen thousands of jobs disappear after Sainsbury's, Tesco and Morrisons also swung the axe.

Retailers have been hit by a surge in Brexit-fuelled inflation, which has seen the cost of goods rocket and consumer confidence plummet since the referendum result.