COMPUTER giant Time, which is in urgent refinancing talks with its bankers, has warned it cannot see an improvement in the hard-hit home PC market in the foreseeable future.

Time Computers has undertaken a major review of its business which will boost its mobile phone business to help offset the downturn in the PC sector.

The privately held company based in Simonstone, near Burnley, is in talks with the HSBC bank in the middle of the current tough trading conditions on the high street.

The run-up to Christmas is traditionally the busiest time of the year for PC sales but customers are becoming increasingly wary of buying a new computer simply to keep pace with improving technology. Time said its problems were a temporary issue rather than a "terminal" one. Time expanded its shops chain at the same time as a downturn in the home computer market. PC retailers have had to cut prices to keep sales figures up.

Time Group's financial director Brian Marsden said: "The trading climate in the global PC market is difficult at the moment, as demonstrated by the recent Gateway figures in the US, and we believe that we cannot rely on it improving in the foreseeable future.

"Therefore we are undertaking a strategic and operational review of our business to better align with the current marketplace. "This will further enhance the investment in our mobile communications business, Time Talk, which has opened more than 100 stores in the last ten weeks in readiness for the next generation of mobile phones."

HSBC declined to comment on the talks.

Time employs more than 2,000 people, including 1,000 at Simonstone. It created Time Talk, which will eventually be a 150-strong chain of shops selling electronic goods such as mobile telephones, in October.

It is Britain's biggest computer retailer with a chain of more than 200 shops across the country selling its products.

Last week US computer maker Gateway issued a profit warning after a slump in demand.

Time was founded in Blackburn in 1987 by consultant paediatrician Dr Tariq Mohammed and his younger brother Tahir Mohsan.

Granville Technology, Time's holding company, has sales of more than £200million. Mr Mohsan, Time's managing director, and his brother are estimated to have built up a fortune worth tens of millions of pounds.