Plumbers merchant group Wolseley is consulting with 200 members of staff over redundancies.
The move follows the group’s takeover the former Burdens business, acquired for £30m in October.
Wolseley bought 22 sites from the drainage and civil engineering supplier before Burdens went into administration. Some 554 Burdens staff transfered over to Wolseley.
In its half-year statement the group said: “The assets were distressed when we acquired them and we are now rebuilding revenue in the business.
“We will ensure that the cost base is appropriate going forward and have recently initiated actions to reduce the headcount by approximately 200, subject to employee consultation.”