Homebase Macclesfield store looks set to close 

Homebase’s Lyme Green store is on the hit-list for store closures by owners Hilco Capital.

Closures of 42 stores could take place across the country under a Company Voluntary Arrangement (CVA) – effectively a last ditch attempt made by a company before administration, which signals the company is in financial dire straits.

Hilco Capital bought Homebase for £1 earlier this year and have already closed 18 stores since buying up the retailer.

In a statement, Homebase said: “HHGL Limited (“Homebase”) today announces the next phase of its restructuring plan. The company is to launch a Company Voluntary Arrangement (CVA) and is seeking approval from creditors on a proposed plan to reduce its cost base in the UK and the Republic of Ireland.

“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.

“After a comprehensive review, Homebase has concluded that its current store portfolio mix is no longer viable. Rental costs associated with stores are unsustainable and many stores are loss making.

“The CVA enables Homebase to make essential changes to its store portfolio, reducing its cost base and providing a stable platform on which to continue its turnaround.

“Under the terms of the CVA proposal, all creditors receive a better outcome than any other likely alternative.

“It is anticipated that 42 stores will close during late 2018 and early 2019. The proposed changes to the store portfolio will regrettably mean redundancies from those stores earmarked for closure.

“The process is expected to lead to a reduction of up to 1,500 roles, although every effort will be made to redeploy team members within the business where possible.

“All stores in the UK and the Republic of Ireland will remain open for business as usual and this process will have no impact on customer purchases, outstanding orders or any product or service guarantees. The creditors will vote on the CVA on 31 August 2018.”