Tesco could shut 13 stores in Hungary in February
Tesco could shut 13 stores in Hungary in February.Reuters

Tesco could reportedly shut up to 13 smaller shops in Hungary as part of a cost-cutting drive.

Tesco may close the loss-making shops, mainly outside Budapest, in February, Hungarian daily Magyar Nemzet reported. More stores may be shut later this year.

Tesco is Hungary's biggest supermarket chain. It has over 200 stores and is the central European nation's third-biggest employer.

Pursued by Reuters, Tesco refused to comment on the report.

Britain's biggest retailer plans to slash costs and sell assets to mend its finances as its new boss sets out to fight back from years of market share losses and an accounting scandal.

The troubled firm announced earlier in the week that it will close 43 stores across the UK as well as its Cheshunt headquarters, and sell assets including its Blinkbox streaming service and Dunnhumby data business.

The company said it will also review new shop openings and was closing its final salary pension scheme. Tesco said it will move from its Hertfordshire head office in 2016 to new premises in Welwyn Garden City.

The restructuring of its business is expected to shore up £250m ($378m, €319m).

The closures and asset sales will lead to inevitable job losses and come after a disastrous year for the retailer, which has seen some 38% wiped off its share price.