The UK's first catalogue shopping company, Bradford-based Empire Stores, is to close with the loss of up to 350 jobs - about half its workforce in the city.

Owner Redcats UK, part of the French-owned Redcats Group, the world's third largest retailer, says it is refocusing its UK business away from the declining catalogue agency market.

It will instead concentrate on its expanding web-based and direct home shopping brands such as La Redoute, Vertbaudet and Daxon.

About 500 workers at the firm's warehouse and distribution centre at Kettlethorpe, near Wakefield, also face redundancy and employees at both sites have been briefed about the plans.

But the group emphasised it was committed to investing in and developing its expanding web-based brands which were booming and its Bradford operation would remain at the heart of the business.

Empire Stores will cease trading by next January unless a buyer is found, the company said.

Its closure will be carried out in full consultation with union and staff representatives.

The decision to shut the Canal Road-based business, which was founded in 1831 and introduced its first mail-order catalogue in 1890, follows a continued decline in its traditional catalogue shopping market which has been overtaken by on-line shopping, discount high street shops such as Primark and the wider availability of credit and finance.

Redcats will progressively cease operating Empire Stores over the next 12 months and no job losses are expected before April. Customers will not notice any immediate changes, said the group.

Sources close to the business indicate that Empire Stores lost about £8 million in 2007 and there are no prospects of a recovery in the traditional but declining sector of the retail market.

Stephane Roche, Redcats managing director, said: " We deeply regret have to implement these initiatives.

"However, this decision will create a viable platform for investment and development of our other direct and web driven brands as we build a successful business for the long term.

"As far as our customers are concerned, it is very much business as usual and in the future they may also receive offers to trade with some of our other brands."

Val Pugh, national officer of USDAW, the shopworkers and distribution union, said that although the steep decline in he catalogue shopping business could not be denied, the decision to shed mainly skilled white collar staff such as merchandisers and buyers was a major blow for the city.

She said: "We will strongly test the business case for this decision and perhaps be able to make alternative suggestions to minimise the impact on our members in Bradford and Wakefield.

"The sad thing is that we are seeing the reduction of some real jobs employing skilled people which Bradford cannot afford to lose."