French luxury goods group Kering has said it expects the restructuring and sale of its La Redoute mail order business will have a "significant" impact on jobs.

"Kering is still in discussions with three potential buyers and all of them acknowledged the need for a modernisation of the company, with an emphasis on logistics and IT," a spokesperson for Kering told just-style.

"I can't comment on figures, but this modernisation will have a significant impact on jobs."

Media reports, however, suggest that the group could axe up to 700 jobs at the home shopping firm.

The comments come a week after the company refused to be drawn on reports it was looking to invest at least EUR300m (US$410.2m) into La Redoute to try to find a buyer for the business.

Kering, formerly known as PPR, has been slowly divesting brands from its Redcats mail order division after it failed to find a buyer for the whole business, and to focus on its luxury and sportswear businesses.

Earlier this year, Redcats completed the sale of its OneStopPlus plus size clothing business to private equity firms Charlesbank Capital Partners and Webster Capital.

The French luxury company reported a 1.5% decline in third-quarter revenue, weighed down by its performance at Gucci and at its sportswear brand Puma.