That was in stark contrast to its £10.6m profit for the same period in 2007.
Revenues were also down from £785m in 2007 by eight per cent to £723m. Like-for-like sales were also down at 5.5 per cent, with the retailer warning that trading would remain tough over the key Christmas period.
Group-wide, Kesa made a profit of £13m, though that was down from £45m a year ago.
"The economic climate across Europe has created very tough trading conditions for all our businesses, particularly in the UK and Spain," warned chief executive Jean-Noel Labroue, who steps down at the end of January.