Two Homebase stores in Sheffield could be under threat after plans were announced to close 40 shops, putting 2,000 jobs at risk.
Australian owner Wesfarmers paid £340m for the DIY chain in 2016 and has been rebranding the stores under the Bunnings name.
But after a "disappointing" performance the company has put Homebase under review and expects it to lose £97m in the first half of 2018.
The firm, which has stores at Chesterfield Road, Woodseats and Drakehouse, has already closed down its store in Doncaster.
Several store chains have announced job cuts recently, including supermarket giants Tesco, Sainsbury's and Asda as the retail sector continues to struggle.
Wesfarmers said it had written down the value of its Homebase chain by £454m as a result of its poor trading.
"The Homebase acquisition has been below our expectations which is obviously disappointing," Wesfarmers managing director Rob Scott said.
"In light of this, a review of Bunnings UK has commenced to identify the actions required to improve shareholder returns," he added.
Homebase has 250 stores across the UK and employs 12,000 people.
Wesfarmers will announce the result of its review in June, so staff will have to wait until then to find out which stores are to close.
The Doncaster branch closed last September.