Overcast

Overcast

max temp: 10°C

min temp: 7°C

Search

Trouble DIY retailer explores possible store closures in Suffolk and Essex

PUBLISHED: 14:30 29 June 2018 | UPDATED: 15:35 29 June 2018

File photo dated 18/01/16 of a Homebase store sign. The DIY chain is exploring a second wave of store closures that could see up to 40 DIY outlets shut, putting hundreds more retail jobs at risk. PRESS ASSOCIATION Photo. Issue date: Friday June 29, 2018. Homebase is sounding out advisers for a potential Company Voluntary Agreement (CVA), a controversial insolvency procedure that has been adopted by the likes of House of Fraser, Mothercare and Carpetright. See PA story CITY Homebase. Photo credit should read: Steve Parsons/PA Wire

File photo dated 18/01/16 of a Homebase store sign. The DIY chain is exploring a second wave of store closures that could see up to 40 DIY outlets shut, putting hundreds more retail jobs at risk. PRESS ASSOCIATION Photo. Issue date: Friday June 29, 2018. Homebase is sounding out advisers for a potential Company Voluntary Agreement (CVA), a controversial insolvency procedure that has been adopted by the likes of House of Fraser, Mothercare and Carpetright. See PA story CITY Homebase. Photo credit should read: Steve Parsons/PA Wire

Homebase is exploring a second wave of store closures that could see up to 40 DIY outlets shut, putting hundreds more retail jobs at risk.

The DIY chain is sounding out advisers for a potential Company Voluntary Agreement (CVA), a controversial insolvency procedure that has been adopted by the likes of House of Fraser, Mothercare and Carpetright.

Sources told the Press Association that restructuring experts at Alvarez & Marsal are being scouted by Homebase for the CVA, although other options are being assessed alongside this.

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

A total of 17 Homebase stores have been shut, with another 23 earmarked for possible closure.

The business has also axed 303 jobs at its head office in Milton Keynes this week.

Homebase’s next round of restructuring will come after its Australian owner Wesfarmers completes the sales of the company to Hilco, a retail turnaround specialist, for £1.

However, it is thought that Homebase’s management is cautious about the prospect of a CVA because the process is so controversial with creditors, especially landlords.

Homebase would have to secure the support of landlords to carry out a CVA.

The property industry has expressed outrage at the process, which has been adopted by the likes of House of Fraser, Carpetright and Mothercare, saying it leaves them out-of-pocket.

Homebase was bought by Australian conglomerate 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 fast pace of the transition gave Wesfarmers little time to introduce the Bunnings brand, which is highly successful in Australia, to UK consumers.

The sale of retail chain to Hilco means the 24 stores that were trading as Bunnings will convert back to the Homebase fascia.

Prior to the Hilco takeover, Homebase had 250 stores at its peak and 12,000 staff.

Search hundreds of local jobs at Jobs24

As politicians in the House of Commons debate the latest draft agreement that has been thrashed out negotiators, business leaders in Suffolk and Essex have shared their thoughts on whether they support Mrs May’s proposals or not.

A 30-acre substation would be “extremely challenging” to develop in a Suffolk beauty spot without harming the protected landscape, a leaked report said.

Plans for a new brain injury rehabilitation hub and housing centre in Ipswich have been boosted thanks to some large donations towards the cost of the build.

The Southwold brewery Adnams is seeking damages as the main claimant in a group action lawsuit which was filed this week.

Woodbridge marketing firm, Curzon Marketing, has just moved to larger offices to allow for further expansion and business development.

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