Gemini Electric Appliances, which sells a range of appliances to homes and businesses across the UK, has agreed to sell its UK business, including its appliance manufacturing and supply chain.
The company will also shut down operations in the Netherlands and Ireland.
The move is part of a strategy to reduce costs and to focus on emerging markets, where it plans to sell out of its European business.
The sale of Gemini will reduce its UK turnover to £8m, down from £13m last year.
Gemini also said it will cut its annual revenue by about 20 per cent.
Its shares have lost almost a third of their value in the past 12 months.
The firm has also had a bad year, dropping from about £1.7bn to £1bn last year, with some analysts saying it could have been even worse.
Its parent company, Italian company Cinzia Energy, has already closed a £1 billion acquisition in the US.