1500 jobs at risk as Homesbase stores get set to close
HOMEBASE is pressing ahead with a wave of store closures that will see three shut in and around the Glasgow area.
The Robroyston, Pollokshaws and East Kilbride branches will close, the company confirmed.
Hamilton is the only shop not earmarked for closure.
Overall, 42 DIY outlets will shut, putting around 1500 jobs at risk.
The retailer is closing the stores via a Company Voluntary Agreement (CVA), a controversial insolvency procedure used by struggling firms to shut under-performing shops.
Restructuring experts at Alvarez & Marsal will carry out the CVA, which will require the support of landlords. It was reported in June that Homebase was exploring further store closures through the procedure.
The latest restructuring would come on top of a store closure programme the retailer has been carrying out since February.
A total of 16 Homebase stores have been shut this year and the business has also axed 303 jobs at its head office in Milton Keynes.
Homebase could see some resistance from landlords to the CVA, with the property industry expressing disdain for the procedure, saying it leaves them out-of-pocket. CVAs have been adopted by a host of retailers including New Look, Carpetright and Mothercare.