Homebase sued over rent cuts

LANDLORDS could sue Homebase as the DIY chain tries to slash rents by up to 90pc.

Property owners including asset managers M&G and Aberdeen Standard have hired a City law firm to challenge Homebase over the rent cuts and store closures proposed in its Company Voluntary Arrangement (CVA).

Homebase’s private equity owner Hilco has promised to pump £25m into the company if the arrangement is approved by the chain ’s creditors on Friday. If the CVA is voted down, Homebase would almost certainly plunge into administration - putting 11,000 jobs at risk.

The restructuring plan proposes the closure of 42 stores and rent cuts of up to 90pc on 70 others. But CVAs have caused anger as landlords complain they are hit hardest while other creditors are left largely untouched.