Homebase to close around 60 stores

Lloyd Doyle
August 9, 2018

Hilco Capital is due to outline plans for a Company Voluntary Agreement (CVA) which could see around a quarter of stores shut.

CVA deals allow companies to secure rent cuts and offload loss-making stores and have been used this year by Mothercare, New Look and Carpetright as well as department store chain House of Fraser.

The news is the latest crisis of a hard spell for the British high street.

Hilco is understood to have been working on the CVA since it bought Homebase from Australian group Wesfarmers earlier this year.

According to the latest reports, the number of stores facing the axe under the CVA is still under discussion but could be between 50 and 80, including the 18 that have already closed in recent months.

If it is at the top end of that range, the closure programme will represent nearly one third of Homebase's estate.

Hilco took over Homebase from Wesfarmers for a nominal £1 fee in May.

The company was forced to write off millions after axing some of Homebase's most popular lines, according to Sky.

Sales in the three months to the end of March fell 13.5% to £211m, according to figures published last month that Wesfarmers blamed partly on the "Beast from the East" weather front which brought inclement conditions to the United Kingdom for an extended period earlier this year.

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

Other reports by Iphone Fresh

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