Homebase to close 42 stores
The Homebase DIY chain has confirmed plans to close 42 stores across the UK and Ireland under company voluntary arrangement proposals. The move will put up to 1,500 jobs at risk.
Homebase has already closed some 17 outlets earlier this year, and also made over 300 people redundant at Its head office in Milton Keynes.
The CVA will be carried out by restructuring specialist Alvarez & Marsal although the proposals will need the support of landlords. In addition, it is understood that Homebase is seeking to secure rent reductions on a further 18 stores.
Damian McGloughlin, chief executive of Homebase, said: “Launching a CVA has been a difficult decision and one we have not taken lightly. Homebase has been one of the most recognisable retail brands for almost 40 years, but the reality is we need to continue to take decisive action to address the under performance of the business and deal with the burden of our cost base, as well as to protect thousands of jobs.
“The CV is therefore an essential measure for the business to take and will enable us to refocus our operations and rebuild our offer for the years ahead.”
Homebase was bought by Hilco Capital from Australian group Wesfarmers for a nominal sum this year after Wesfarmers had acquired the chain in 2016 for £340 million. Wesfarmers had tried to bring its Bunnings brand to the UK by converting many of the stores to the fascia, but in the end the purchase proved to be disastrous for Wesfarmers after problems arose from poor execution post-acquisition.
