Homebase axe 10 Scots stores

Fears for 350 jobs, 1500 across Britain = $72.566

HOMEBASE are to close 10 of their 17 stores in Scotland, putting an estimated 350 jobs at risk.

The DIY retailers plan to shut a total of 42 outlets across the UK and Ireland via a company voluntary agreement (CVA) – an insolvency procedure used by struggling firms to shed loss-making parts of the business.

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

Stores in Aberdeen Bridge of Don and Portlethen, Dundee, East Kilbride, Glasgow Pollokshaws and Robroyston, Greenock, Hawick, Inverness and Stirling will close their doors over the next 16 months.

The company said 1500 jobs would be affected across all 42 stores. The restructuring plan comes on top of a store closure programme that has seen 17 of the retailers’ shops shut down since February.

Homebase boss Damian McGloughlin said it was a “di f ficult decision” but added: “The reality is we need to continue to take decisive action t o ad d r e s s the underperformance of the business and deal with the burden of our cost base, as well as to protect thousands of jobs.”

Hilco Capital, who specialise in snapping up struggling businesses, acquired the retailers in May after a disastrous earlier takeover by Australian conglomerate Wesfarmers.

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

They were also linked with a last-gasp rescue of Toys R Us which never happened.

Wesfarmers’ purchase of Homebase for £340million in 2016 proved a spectacular flop.

They aimed to rebrand a host of Homebase stores under their Bunnings banner but the costly move fell flat. troubled departmentdepa store chains into a single offering looks to be the only viaviable solution.” But retail analyst Richard Hyman warned: “TwoTw dinosaurs together simply makes a bigger dinosaur.” dino It came as top ratingsra agency Moody’s downgraded House of Fraser. They warned that the move “reflects the high expectedex losses” for creditors cre as a result of the deal.

of Homebase stores are loss-making

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