Consultants brought in as fears grow for Homebase stores

Struggling retailer Homebase has drafted in a specialist consultancy firm to help advise its management team as fears over the DIY chain’s future intensify.

It is understood Boston Consulting Group (BCG) has been brought in to advise boss Damian McGloughlin, who took the helm at Homebase in January, two years after it was bought by Australian conglomerate Wesfarmers for £340million.

Homebase’s future was thrown into doubt two months ago when Wesfarmers announced £584million in writedowns from the acquisition, and said half-year losses would widen from £28million to £97million.

Rob Scott, Wesfarmers’ managing director, warned that up to 40 stores could close – putting 2,000 jobs at risk.

BCG’s appointment comes as Wesfarmers conducts a strategic review of Homebase, with a decision due in June.

Retail experts have criticised Wesfarmers for failing to judge the UK market correctly after buying Homebase from Home Retail Group in January 2016.

Wesfarmers is well known for its Bunnings chain in Australia, and the company attempted to import the home improvement brand to the UK by converting 19 Homebase stores into their Bunnings format.

However, the fast pace of the transition gave Wesfarmers little time to introduce the Bunnings brand, which is highly successful in Australia, to the UK consumer.

Homebase is under review