Mike Ashley's Frasers Group has put jobs at risk at Studio Retail as part of a planned merger of the brand with Missguided and I Saw It First.
Lancashire-based Studio Retail was acquired out of administration in February last year after owing over £80m to its creditors.
Manchester's Missguided was also acquired out of administration in a £20m deal in June 2022 while I Saw It First, which is also based in the city, was bought a month later for £1 after
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Now, in a letter to Studio Retail employees, it has been revealed that Frasers Group is planning to merge the operations of all three brands in a move which will lead to job losses.
Studio Retail said the move will bring about "significant cost efficiencies" and allow it to "benefit from the longer-term group investments in technology by working on a shared platform".
A first redundancy consultation was held on July 17 while trade union USDAW has called for an emergency meeting of its members to "ensure they are fully represented and supported through this difficult time".
Since being acquired by Frasers Group, there have been a "large number of redundancies" at the company, according to USDAW, while its sites in Chadderton and Failsworth have been closed.
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Julia Baldwin, USDAW area organiser, said: "It is extremely disappointing that, after last year's large-scale restructuring, the company has again announced further changes affecting mainly the same staff.
"The timing is difficult, particularly in a cost of living crisis. Employees at Studio are loyal to the company, many with long service and have demonstrated their commitment by relocating across the group.
"A second group consultation meeting is planned with the company, where we will make robust and meaningful challenges on behalf of our members.
"Usdaw has also called for emergency meetings with our members to ensure they are fully represented and supported through this difficult time."
In a letter to staff, Studio Retail chief executive Paul Kendrick said: "At the start of this year, we shared that Studio has a strategy to grow through increasing sales and reducing overhead costs, moving from a loss-making to a profitable business.
"As part of a collection of brands and companies, Studio has opportunities to leverage and share Frasers Group resources and infrastructure to support this strategy.
"In light of this, Studio restarted its retail transformation project with a view to adopting the highly efficient systems already used by group to help drive its growth plan and set our retail business up for future success.
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"As you might expect, our proposal to adopt group systems is likely to mean that many systems we currently use across Studio will change and our processes will also have to adapt to align to the way the wider group operates.
"Our expectation is that these changes will bring significant cost efficiencies and will ensure we benefit from the longer-term group investments in technology by working on a shared platform.
"To further maximise synergies and efficiencies, it is also proposed that the business operations of all I Saw It First and Missguided functions will transfer into the Studio Retail operation.
"We believe that creating a single structure under Studio for all brands and labels, as well as leveraging the infrastructure across Frasers Group, will support the sustainable evolution of the brands and provide a profitable foundation from which we can build on in the future.
"Implementing the above changes is likely, subject to consultation, to require changes to our organisation structures, with some areas supported by group and other areas realigned to support the roll out of the efficient systems and processes being adopted.
"On Monday 17 July, our colleagues who are directly impacted by these announcements were briefed on the proposed changes, and in the coming days will be contacted to explain what this means for them and their roles in more detail.
"We are now working with USDAW, our trade union, and will continue to support colleagues throughout this process.
"Studio and USDAW work well together as a partnership and have a mutual respect for each other's position, and, as always, colleagues will be at the centre of the conversation.
"I know you will all appreciate that this may be an unsettling time for a number of our colleagues, and I ask you all to please be mindful of this."
Frasers Group has been contacted for comment by BusinessLive.