The latest news from Hilco owned Homebase is that it will close a minimum of 42 under-performing stores from the Homebase chain as it seeks to return the business to profit. The closures are likely to be swift and will inevitably result in significant job losses. A CVA is being prepared by Alvarez & Marshal which will require the support of affected landlords. Rent reductions are also being sought of between 25 and 90 per cent on a further 18+ stores. It is understood that over 70 per cent of Homebase stores are currently loss making and that revenues are continuing to fall.
Homebase CEO Damian McGloughlin commented: “Launching a CVA has been a difficult decision and one we have not taken lightly. Homebase has been one of the most recognisable brands for almost 40 years but the reality is we need to continue to take decisive action to address the underperformance of the business and deal with the burden of our cost base, as well as to protect thousands of jobs.”
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