Homebase closures set to leave 300 out of work

AN ESTIMATED 300 workers at Homebase could lose their jobs following the DIY chain’s decision to close three of its Irish stores as part of a rescue plan to save the company from collapse.

Homebase won approval yesterday from creditors who overwhelmingly voted in favour of closing 42 stores in the UK and Ireland.

Two stores in Dublin – at Fonthill and at Naas Road – will close, as will an outlet in Co Limerick.

The chief executive of Homebase said the company voluntary arrangement (CVA) would help turn the business around and return it to profitability.

The stores are set to close between the end of this year and early 2019.

Chief executive Damian McGloughlin said: “We are pleased that an overwhelming majority of our creditors, including such a proportion of landlords, have supported the plans laid out in the CVA.

“This has been a difficult time for many of our team members and I am very grateful for their continued support and hard work.”

Mandate assistant general secretary Gerry Light told the

Irish Independent that it is hoping to achieve the best deal possible for its members, but warned there may be job losses.

“It will be a minimum of 300 people who will lose their jobs in the affected Irish stores,” he said.

“These stores aren’t insignificant in terms of their size and often have well over 100 people employed on a part-time, temporary and full-time basis.

“We’re now engaging with those responsible for the workers’ welfare in an attempt to get the best possible deal for those affected.”

However, Mr Light admitted that reaching a favourable outcome for the workers may be difficult to achieve.

“We’d be looking at redeployment where possible, but sometimes this isn’t feasible if it will mean our members will have to travel very long distances to work. After that we’d be looking for the best possible exit package, but due to the company’s current state this can be extremely difficult.”

The Mandate representative added that the store closures are testament to the strains of the retail sector.

“The retail sector in general is under more pressure than it’s ever been in,” he said. “We’re now seeing a worrying trend beginning to develop.”

‘These stores aren’t insignificant in terms of their size and staff ’