Homebase store set to shut

September 03 2018
Homebase store set to shut

HOMEBASE in Longwell Green will close as part of a restructuring process.

The DIY store, in Aldermoor Way, is one of 42 outlets nationally which will shut over the next 16 months.

The branch became a Homebase clearance outlet, used to get rid of unwanted stock, more than a year ago.

Previous owners, Australian firm Wesfarmers, bought Homebase for £340m in 2016 but plans to rebrand it as Bunnings were unsuccessful.

Wesfarmers consequently sold the business to restructuring specialist Hilco Capital for just £1. Hilco has now confirmed plans to close 42 of its 246 branches.

The closures are part of a Company Voluntary Arrangement (CVA) and could put 1,500 jobs at risk.

Homebase say every effort will be made to redeploy staff within the business, although the number of redundancies nationally is expected to be high.

Damian McGloughlin, chief executive of Homebase, said: "Launching a CVA has been a difficult decision and one that 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 CVA 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 is one of various retailers to take out a CVA in 2018 to try to stay afloat. Other chains include New Look, Mothercare, Carpetright and, more recently, House of Fraser.