Job fears at store on closure hit list

Staff at the Stirling branch of a DIY chain store were this week fearing for their future after the company announced it has been earmarked for closure.

The Homebase store at Springkerse is on a hit list of 42 branches facing potential closure under a company voluntary arrangement (CVA).

The home improvement retailer is seeking approval from creditors on a plan to reduce its cost base in the UK and Ireland following a decline in performance and profitability over the last two years.

Homebase was sold by Australian retailer Wesfarmers to restructuring and refinancing specialists Hilco in May for £1.

Hilco has since cut around 300 jobs at the firm’s head office, which sparked fears among the workforce.

The firm announced the 42 branches identified for potential closure under the proposal yesterday. Ten are in Scotland, including Stirling.

It is anticipated that the stores will close during late 2018 and early 2019.

Under the plans staff at the stores earmarked for closure would be made redundant. The process is expected to see up to 1500 jobs cut.

Homebase chief executive Damian McGloughlin said: “Launching a CVA has been a difficult decision and one that we have not taken lightly.

“Homebase has been one of the most recognisable retail brands for almost 40 years but 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 CVA is therefore an essential measure for the business to take and will enable us to refocus our operations and rebuild our offer for the years ahead.”

The shop workers union Usdaw this week urged the owners to include staff in the turnaround process.

Usdaw national officer Dave Gill said: “Homebase staff feared the worst when the company was sold for just one pound following the disastrous ownership by Wesfarmers.

“I’m seeking urgent clarification from Hilco about their long–term plan to turn the company around. All too often staff are excluded from the CVA process as the future of their jobs are being decided.

“Clearly there is a huge task ahead. It’s crucial that the company listens to the staff and invests in their experience and expertise to turn the business around and again make it a success.

“This is best achieved through their trade union. We are in touch with the company and continue to provide our members with the representation, support and advice they require at these uncertain and difficult times.”

Stirling MSP Bruce Crawford described the announcement as a “disappointing turn of events”.

He said: “My thoughts are with the local staff, who will be deeply concerned about what the near future may hold.

“I will be contacting senior management within Homebase to get a clearer idea as to when any final decisions are likely to be made on the Stirling store.

“Sadly this appears to follow a UK– wide trend in retail where growing online sales are having an impact on physical stores and where the downturn in the pound and people having less money to spend as a result of the Brexit vote is having a severe impact on local businesses.”

Stirling West councillor Neil Benny said: “It’s a real shame. Homebase has been in Stirling for quite a few years now and it’s really unfortunate for the workforce there.

“It’s unfortunate but that’s the changing shape of retail these days. I just hope that the workers get all of the support that they need.”

Creditors will vote on the CVA on August 31.

In recent years Stirling has lost a number of its high street retailers. In 2016 BHS closed, Tiso in Murray Place shut in 2017 and closures this year include Toys R Us and Ann Summers, both in the Thistles Centre, and Maplin at Burghmuir Retail Park.

Official Scottish Government figures show that between 2008 and 2015 in the Stirling area the number of shops fell more than nine per cent, from 574 to 521.

Over the same period the number of jobs in retail here fell by almost 11 per cent, from 5600 to 5000.

It’s unfortunate but that’s the changing shape of retail these days