As such, the company has declared it will take “decisive action” when it comes to cost reduction and margin growth as part of wider turnaround.

Like-for-like sales were “lower than anticipated” with a 4.9 per cent decline reported over the 11 weeks ending January 14 across The Works’ 525 stores.

The arts, crafts and stationery company is taking “decisive action” on cost reduction and margin growth in order to turn around its performance.

In its statement, the arts and crafts retailer blamed this result on a “challenging consumer environment and subdued demand over the festive period”.

As of January 14, the high street retailer reported a cash position of £18.4million which is an improvement after Christmas with the expectation of being debt-free by the end of the financial year.

Gavin Peck, The Works’ chief executive, described the current market conditions as being “persistently challenging”.

He said: “It is clear that many families celebrated Christmas on tighter budgets this year and whilst we offered excellent value, we were not immune to this reduced spend.

“I am proud of the way that our colleagues have rallied together to deliver for customers during these challenging times.”