Sunshine and Showers

Sunshine and Showers

max temp: 14°C

min temp: 9°C

Search
Norfolk Business Awards 2018

1,500 jobs at risk as Homebase reveals the 42 stores it wants to close - including Ipswich

Homebase is closing stores via a company voluntary arrangement (CVA), a procedure used by struggling firms to shut under-performing shops. Picture: Steve Parsons/PA Wire.

Homebase is closing stores via a company voluntary arrangement (CVA), a procedure used by struggling firms to shut under-performing shops. Picture: Steve Parsons/PA Wire.

Homebase has confirmed the 42 stores it wants to close as part of a restructure that puts 1,500 jobs at risk - and it includes the Ipswich branch.

The retailer is closing the stores via a company voluntary arrangement (CVA), a controversial insolvency procedure used by struggling firms to shut under-performing shops.

Restructuring experts at Alvarez & Marsal will carry out the CVA, which will require the support of landlords.

In the East of England it has outlets in Bury St Edmunds, Cambridge, Cromer, Dereham, Felixstowe, Ipswich, Lowestoft, Newmarket, and two in Norwich, on Hall Road and in Sprowston.

Of those, Ipswich is the only store to have been identified as being at risk. The full list of affected stores is below.

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 underperformance 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.”

Stephanie Pollitt, Assistant Director of Real Estate Policy, British Property Federation (BPF), said: “These situations are never easy as property owners need to take into consideration the impact on their investors, including those protecting their investors’ pensioners’ savings, as they vote on the CVA proposal.

“Homebase and Alvarez & Marsal have, however, demonstrated best practice, engaging with the BPF in the process and therefore ensuring property owners’ interests have been properly taken into account. Ultimately, it will be for individual property owners to decide how they will vote on the CVA, but the proposal has sought to find a solution that provides a sustainable future for Homebase.”

The Press Association first reported in June that Homebase was exploring further store closures through the procedure.

The latest restructuring would come on top of a store closure programme the retailer has been carrying out since February.

A total of 16 Homebase stores have been shut this year and the business has also axed 303 jobs at its head office in Milton Keynes.

Homebase could see some resistance from landlords to the CVA, with the property industry expressing disdain for the procedure, saying it leaves them out of pocket.

CVAs have been adopted by a host of retailers including New Look, Carpetright and Mothercare.

The Homebase store closures follow the sale of the business earlier this year by its former Australian owner Wesfarmers to Hilco, a retail turnaround specialist, for £1. Homebase was bought by Wesfarmers for £340 million in 2016.

Wesfarmers is known for its Bunnings chain in Australia, and attempted to import the home improvement brand to the UK by converting a host of Homebase stores into the Bunnings format.

However, the strategy ended in disaster. Prior to the Hilco takeover, Homebase had 250 stores at its peak and 12,000 staff.

The stores identified for potential closure by Homebase are:

1. Aberdeen Bridge of Don

2. Aberdeen Portlethen

3. Aylesbury

4. Bedford St Johns

5. Bradford

6. Brentford

7. Bristol

8. Canterbury

9. Cardiff Newport Road

10. Croydon Purley Way

11. Droitwich

12. Dublin Fonthill

13. Dublin Naas Road

14. Dundee

15. East Kilbride

16. Exeter

17. Gateshead

18. Grantham

19. Greenock

20. Hawick

21. Inverness

22. Ipswich

23. Limerick

24. London Merton

25. London New Southgate

26. London Wimbledon

27. Macclesfield

28. Oxford Botley Road

29. Peterborough

30. Pollokshaws

31. Poole Tower Park

32. Robroyston

33. Salisbury

34. Seven Kings

35. Solihull

36. Southampton Hedge End

37. Southend

38. Stirling

39. Swindon Drakes Way

40. Swindon Orbital

41. Warrington

42. Whitby

Search hundreds of local jobs at Jobs24

East Anglia has made national headlines on more than one occasion this week as a social media star secured a regular slot on This Morning and a pub scrapped cash completely. Here we look back at some of the biggest business stories of the week.

Birketts solicitors, in Ipswich, will host the second Ipswich Sleep Out in November to help raise money to tackle the problem of youth homelessness.

While most people throw their empty plastic cleaning bottles away when they’re empty, one father of three from Essex has been refilling and reusing his for the last three years.

Bosses behind the development of the former Sproughton sugar beet site have confirmed it will not be used as another out-of-town retail park.

Controversial plans for CCTV cameras to be installed in all taxis and private hire vehicles operating in Colchester are out for consultation.

Management Jobs

Show Job Lists

Most read

Topic pages

Newsletter Sign Up

Sign up to the following newsletters:

Sign up to receive our regular email newsletter

Our Privacy Policy

MyDate24 MyPhotos24