Up to 200 PC World and Currys stores are believed to be under threat of closure as part of a wide-ranging cost-cutting strategy to get the struggling retail chains back on track.

Owner DSG International (DSGi) is expected to unveil the measures when it announces its latest trading statement and strategy review on 15 May.

The company is also expected to announce the conversion of dozens of existing outlets into electronics superstores that will include the PC World and Currys retail brands.

DSGi's recently recruited chief executive John Browett has issued two profit warnings so far this year following a slump in retail sales.

The ex-Tesco man recently pledged to deliver the "value, choice and service that our customers demand", along with the closure of 40 the retail giant's 150 stores in Italy.

DSGi last month blamed heavy discounting aimed at wooing cash-strapped bargain hunters for disappointing sales figures.

The company has been forced to revise sales forecasts from £242m to £200m/£210m for the year.