Homebase jobs under threat as takeover f lops

Aussie owners’ BBQ push backfires

UP TO 2,000 jobs are at risk at Homebase after the DIY chain’s Australian owner announced it was to close as many as 40 stores.

Retail giant Wesfarmers, which bought the British firm for £340million, had promised to woo shoppers with barbecues and outdoor hot tubs.

But, two years after the takeover, the company had to admit yesterday that its UK experiment had failed.

Wesfarmers is preparing for the British stores to lose £97million in the first half of this year, with the takeover set to cost the business £454million.

Sources in Australia even suggested that Wesfarmers could pull out of the UK for good – putting all 250 Homebase stores at risk.

Wesfarmers managing director Rob Scott said: ‘A lot of the underlying causes of the losses we’ve reported today have been through our doing.’

The firm had originally planned to rename hundreds of Homebase stores after its Australian chain Bunnings.

Down Under, the shops have a huge following thanks to their ‘sausage sizzle’ barbecues at weekends, while they are known for friendly customer service.

Last year Wesfarmers opened its first Bunnings store in the UK to huge fanfare, hosting a grand opening at the shop in St Albans, Hertfordshire.

It axed the entire UK senior management team as well as 160 other managers, replaced the distinctive orange and green Homebase signs, and got rid of concessions such as Argos, Habitat and Laura Ashley.

Instead the shop began stocking rolls of artificial turf, £500 olive trees, and assortments of bird feed. Some previously popular ranges of kitchens and bathrooms were axed and replaced with Aussie favourites such as coal-fuelled cookers, outdoor cooking areas and huge hot tubs.

The Australian owners also tried to turn Homebase stores into a day out for the family, holding workshops and classes that taught customers DIY skills such as how to fit shelves and paint doors.

But British customers were left unimpressed with the renovation, as they struggled to find household necessities and even heaters in the winter.

Bunnings group managing director Michael Schneider added: ‘It is clear that a significant amount of change has been driven through Homebase since the acquisition and the disruption caused by the rapid repositioning of the business has contributed to greater than expected losses across the Homebase network.’

Shoppers criticised the decision to pile the stores’ shelves high with stock, likening the new layout to a jumble sale or charity shop. Bunnings introduced 40 per cent more stock when it rebranded the stores.

On Twitter, customers expressed their frustration with the Australian invasion, saying that they were ‘not surprised’ the company was being forced to close stores.

‘Our local Homebase looks more like a charity shop/jumble sale since takeover. Refuse to shop there anymore,’ one shopper said.

Another added: ‘Not surprised they’re closing up to 40 Homebase stores, they’re like an indoor car boot sale these days.’

‘Greater than expected losses’