Feb 27, 2020

Homebase to exit CVA early after return to profit

Homebase plans to end its company voluntary arrangement 18 months early after the UK's second-largest home improvement retailer renegotiated most of its leases and improved profitability. The number of Homebase stores has fallen from 241 before the CVA to 164. Homebase said it had now renegotiated leases at 75 stores and that lower rents accounted for a big chunk of £180m in annualised cost savings. The group said "Almost all" stores were now profitable as a result, whereas before the CVA 70 per cent of them were losing money. Like B&Q, Homebase also plans to experiment with smaller stores in town locations, offering a narrower range of paints, wallpapers and flooring to appeal to a generation of younger Britons who rent rather than own their homes.

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