Published: Thu, August 09, 2018
Business | By Tara Barton

Homebase jobs at risk as 60 stores face closure

Homebase jobs at risk as 60 stores face closure

Sky News said Hilco, which acquired Homebase from Australian group Wesfarmers for a nominal 1 pound in May, was expected to outline proposals for a so called Company Voluntary Arrangement (CVA) restructuring that would close roughly 60 of Homebase's 249 stores.

Wesfarmers bought Homebase in 2016 and set about redeveloping Homebase stores under its Bunnings brand. Our reporter Jessica Savage is outside a Homebase in North London. The chain has branches locally in Wolverhampton, Cannock, Telford, Market Drayton, Wrexham and Kidderminster, and employs around 12,000 people across the UK.

The CVA is being pursued by new owners Hilco Capital, which snapped up Homebase for £1 from Australia's Wesfarmers in May. That was replaced with a B&M earlier this month.

It is understood the number of stores facing the axe has not yet been finalised.

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Homebase has not commented on the speculation, nor the location of the stores which could be closed.

New Look, Carpetright and Mothercare are among the companies to have adopted CVAs this year as the high street struggles with subdued consumer spending, rising labour costs, higher business property taxes and growing online competition.

The final number of shops to be closed will include 18 which have already shut in recent months, Sky News reports, while analysts have speculated that between 1,000 and 1,500 jobs would be put at risk by the announcement.

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