Aug 24, 2018
Creditor agreement shows extent of Homebase woes
DIY chain Homebase will go back to popular products and brands dropped by its previous owner Wesfarmers, as part of a three-year turnround plan designed to address "Extremely challenging" market conditions and excess store space. According to a document prepared for the group's creditors and seen by the Financial Times, "Over 70 per cent" of Homebase stores are currently losing money. The Homebase CVA proposes the closure of 42 stores by next year and big rent reductions on others. "If the CVA is not approved, then it is very likely Homebase will go into administration or liquidation," the document warned. Homebase, which has already shed 300 jobs at its Milton Keynes headquarters, is asking for rent reductions of between 25 and 90 per cent at 70 stores, in addition to closing 42 stores.
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