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IRVINE — The slowing economy will force HomeBase Inc. to fire more than 2,600 workers and close 25 home improvement centers originally listed for conversion to home furnishings centers. 

HomeBase said Tuesday that it now plans to open 42 House2Home stores, down from the 67 conversions previously planned. The layoffs, including 140 at its headquarters, represent more than 25 percent of its work force. 

The slowing economy prompted reconsideration of the “scope and pace of the rollout,” including the wisdom of opening a new concept in several states where it had not yet been tested, HomeBase spokeswoman Michele Feller said. 

HomeBase also said it will take a $90 million to $100 million after-tax charge associated with the store closures. 

The pullback sent shares falling 70 cents Tuesday to $1.70 on the New York Stock Exchange.  

It was down 20 cents to $1.50 in afternoon trading Wednesday. 

“They’re making a smaller bet,” said Brett Hendrickson, an analyst with B. Riley & Co. “It makes the ultimate pot of gold at the end of the conversion process somewhat less, but it also takes away a lot of the risk, because they’re going to have a lot less debt.” Some questioned whether there will be a pot of gold of any size for HomeBase. 

“I think when you’ve got a retailer who changes his colors midstream ... it should be a huge red flag that flies up,” said Brian Postol, an analyst with A.G. Edwards & Sons Inc.  

“I don’t think you can convert from a home improvement to home furnishings mentality. I just don’t see it happening.” 

Last year, HomeBase launched its House2Home concept, which brings under one roof a wide variety of products, from towels and flatware to dining room sets and lawn furniture. 

The company announced in December that it was abandoning the home improvement business and would permanently close 22 HomeBase stores. 

HomeBase said it expects to report a net loss of $3.50 to $3.75 per share for the first fiscal quarter ending April 28. For the fiscal year ending in January, the company expects its losses to total $4 to $4.25 a share. Previously, HomeBase said it expected to lose $2.13 a share for the year.