Department store chain Debenhams is poised to axe 320 store management roles as part of a major cost-cutting drive.

The chain – which has stores in Newcastle , Gateshead Metrocentre, Sunderland Bridges shopping centre, South Shields and Stockton – is battling flagging sales and has cited lacklustre sales over Christmas.

The retailer, in which Newcastle United owner Mike Ashley has a growing stake, said efforts to drive down the “complexity” of management positions, coupled with changes to working practices, would bring “significant cost savings”.

The move could hit 25% of store management roles across the organisation, with a new structure expected to be rolled out by the end of next month.

Debenhams saw its share price slump as much as 24% last month after warning over profits and slashing prices to bolster festive sales.

It also announced plans to ramp up cost savings, with around another £10m earmarked for this financial year and £20m extra annually under a reorganisation led by chief executive Sergio Bucher.

The retailer said: “As part of the implementation of the Debenhams Redesigned strategy a review of our store structure has been undertaken.

“The review has identified significant cost savings by reducing the complexity of management roles in stores as well as processes to optimise and standardise ways of working.

“The effect is that potentially 320 positions are at risk of redundancy - approximately 25% of store management roles. We are currently consulting with individuals affected and will seek redeployment opportunities where possible.”

Debenhams revealed in January that UK like-for-like sales had tumbled 2.6% in the 17 weeks to December 30, with overall group sales down 1.8%. Shares in the firm are currently down 0.14%.

The announcement from Debenhams follows similar drives at other high street giants, which are carrying out restructures to cut costs.

British retail sales enjoyed solid growth in the run-up to Christmas but underlying trading conditions remain tough, according to the Confederation of British Industry.

Last week it emerged nearly 2,000 Homebase staff 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 that trading at the chain has been “poor” as it booked a £454m impairment charge linked to its acquisition of the retailer.

Homebase has eight stores in the North East, with sites in Newcastle , Gateshead, Hexham, Alnwick, Berwick, Blyth , Bishop Auckland and Washington.

Marks and Spencer also announced last week the closure of the Durham city centre store as part of a major shake-up of its shops.

The high street favourite has announced plans to close 14 stores, including the store in Durham’s Silver Street, as part of a restructuring programme.

Meanwhile, troubled fashion retailer New Look says store closures could come as the company bids to slow falling sales.

At a regional level, Dickinsons furniture company went into administration before the end of the year, with the closure of three stores, as pre-Christmas sale failed to shore up finances.