GRAHAM HISCOTT A DIY disaster at Homebase Hilco to axe 42 stores and 1,500 staff

THE vulture fund that bought embattled DIY chain Homebase for a quid is poised to close 42 of its stores, triggering 1,500 job losses.

Mayfair-based Hilco Capital, which specialises in snapping up struggling businesses, acquired the retailer in May after a disastrous earlier takeover by Australian conglomerate Wesfarmers.

A month later it was announced more than 300 jobs would be axed at Homebase’s head office in Milton Keynes. And yesterday brought confirmation that 42 of its remaining 244 stores will close under a proposed Company Voluntary Arrangement.

Homebase boss Damian Mcgloughlin said it was a “difficult decision and one that we have not taken lightly”.

He added: “The reality is we need to continue to take decisive action to address the under-performance of the business and deal with the burden of our cost base, as well as to protect thousands of jobs.”

The closures are on top of 16 Homebase stores that have already shut their doors this year.

The CVA also includes slashing the rents on 70 other branches.

Store landlords and other creditors will vote on the plans on August 31.

Insiders claim that without the shake-up Homebase could collapse.

Rebecca Long Bailey, Shadow Business Secretary, said: “Another household name is closing more stores with workers and their families fearing for what the future might hold.

“Continued inaction from the Tories on the issues facing our high street retailers has allowed the crisis facing the sector to spiral out of control.”

Hilco has been involved in a number of high-profile deals, including pumping money into high street chain HMV.

It was also linked with a last-gasp rescue of Toys R Us which never happened. Wesfarmers’ purchase of Homebase for £340m in 2016 proved a spectacular flop.

It aimed to rebrand a host of Homebase stores under its Bunnings banner but the costly move fell flat.

It is believed 70% of Homebase stores are loss-making.

Hilco Capital is part of Chicagobased Hilco Global, run by Jeffrey Hecktman.

Pop legend Sting is said to have performed at Hecktman’s daughter’s wedding in 2016.

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