Homebase confirms it’s closing 42 stores putting 1,500 jobs at risk in fresh blow to high street
The firm has announced a Company Voluntary Agreement (CVA) that will see the closure of 42 of its 246 branches
HOMEBASE will close 42 stores putting 1,500 jobs at risk, it's been announced today.
The new owner of the DIY chain, Hilco Capital, has confirmed that around a fifth of Homebase's 246 stores will close in the latest blow to the high street.
Earlier this month, reported that we could expect the firm to announce that it was closing 62 branches.
Hilco Capital has outlined which stores will close as part of a Company Voluntary Agreement (CVA) announced today. See our Which branches are closing? story for the full list.
The Sun has asked Homebase how many jobs are at risk as a result of the store closures - experts have speculated that it could be as many as 1,500 - or about 10 per cent of the workforce.
Damian McGloughlin, chief executive of Homebase, said: "We now have the platform to turn the business around and return to profitability.
"This has been a difficult time for many of our team members and I am very grateful for their continued support and hard work.
"We can look to the future with great confidence, and we will be working closely with our suppliers to capitalise on the opportunities we see in the home improvement market in the UK and Ireland."
Hilco bought the hardware store chain for £1 from Australian firm Wesfarmers, which paid £340million for what has been dubbed one of the "most disastrous takeovers ever seen".
Wesfarmers is known for its Bunnings chain in Australia. It attempted to transform Homebase into its own DIY brand.
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Prior to the Hilco takeover, Homebase had 250 stores at its peak and 12,000 staff.
CVAs have been adopted by a host of retailers including New Look, Carpetright and Mothercare, as retailers struggle with rising business rates, competition from online rivals and a slowdown in consumer spending.
Earlier this year, two of the country's largest retailers, Toys R Us and Maplin collapsed putting thousands of jobs at risk.
House of Fraser meanwhile has been plagued with problems in recent months, which resulted in billionaire businessman Mike Ashley, stepping in to pay £90million in cash for the retailer.
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