Children's clothing retailer Pumpkin Patch is quitting the 36 shops it runs in Britain.
It says the returns have not been high enough and trading conditions in Europe are generally very difficult.
In a statement, Pumpkin Patch says the move will cost between $28 - $32 million in redundancy and other costs.
The UK operation, which employs more than 400 people, has struggled due to weak demand, amid the uncertainty created by Europe's debt woes.
A review of its operations, announced last November, found the UK stores should be put into administration.
Pumpkin Patch says the stores might have to be shut if no buyers can be found.
Last year, the company closed its stores in the United States.