Ten stores across Scotland set to go in Homebase closures

Homebase is pressing ahead with a wave of store closures that will mean 42 DIY outlets shutting, putting around 1,500 jobs at risk.

The retailer is closing the stores via a company voluntary arrangement (CVA).

Ten Scottish stores are among those earmarked for closure. Two Aberdeen outlets are set to shut, with stores in Dundee, East Kilbride, Greenock, Hawick, Inverness, Pollokshaws, Robroyston and Stirling on the list to be axed.

Homebase boss 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 Scottish Homebase stores earmarked for closure

● Aberdeen Bridge of Don

● Aberdeen Portlethen

● Dundee

● East Kilbride

● Greenock

● Hawick

● Inverness

● Pollokshaws

● Robroyston

● Stirling 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 firm said it would try to redeploy affected staff.

Restructuring experts at Alvarez & Marsal will carry out the CVA, which will require the support of landlords. It was first 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. The business has axed 303 jobs at its head office in Milton Keynes.

Explaining its predicament, Homebase said in a statement: “Rental costs associated with stores are unsustainable and many stores are loss making.

“Homebase’s sales performance and profitability declined significantly under the previous ownership over the last two years.

“In addition, the company has faced an extremely challenging retail trading environment, reflecting weak consumer confidence and reduced consumer spending.

“These factors have had a significant adverse impact on Homebase’s trading position.”

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.

The Homebase store closures follow the sale of the business earlier this year by former Australian owner Wesfarmers to Hilco for £1.

Homebase was bought by Wesfarmers for £340 million in 2016.