Australian owner Wesfarmers has agreed a sale of Homebase, and the 24 stores it had re-branded as Bunnings, to Hilco Capital for £1. Hilco will restructure the business which will inevitably lead to store closures, re-apply Homebase branding to the stores converted to the Bunnings fascia, and will seek to promptly stem current operating losses which are said to be running at approximately £20 million a month. The business has 250 stores employing a total of 11,000 staff. It is being suggested that around 100 stores will close.
UK managing director of Bunnings/Homebase CEO Damian McGloughlin said: “We are pleased to have reached an agreement with Hilco and this marks an exciting new chapter for Homebase. With Hilco’s support we have the commitment of an experienced partner, substantial additional capital, stability for the business and the opportunity to reinvigorate a brand that has been a mainstay of UK retail for over 40 years.”
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