Homebase Ireland enters examinership
More than 550 jobs have been put at risk after the Irish arm of the Homebase DIY chain went into examinership.
Homebase Ireland has 15 stores in the Republic of Ireland which employ 558 people. It has seen a 31% reduction in sales since 2009 and has been unprofitable for each of the past five years despite remedial action being taken by management.
In a statement, the retailer said “upward only” rent reviews on store leases had also made it difficult to reduce operating costs.
Homebase Ireland will now close three of its 15 stores; Fonthill in Dublin, and Carlow and Castlebar in Co Mayo. The stores employ 17 full-time and 79 part-time staff.
Never Miss a Retail Update!The retailer added that it was now looking to restructure the business to put it on a sustainable footing. A key element of the examinership process will be to protect as many jobs as possible.
Robert Burke, chairman, Homebase Ireland said: “The significant deterioration in consumer spending over the last five years coupled with high rents at each of our stores has made restructuring an imperative in order to re-establish a sustainable business, to secure the future of as many stores as possible and to protect as many jobs as possible. Today’s appointment represents an important step in this process.
“Customers can be reassured that the business will trade as normal during the examinership and all ordered products, pre-payments, credit notes and vouchers will be fully honoured.”
