DIY chain Homebase is reportedly planning to shut down a large number of its stores putting at least 1,000 jobs at risk. Anonymous sources have told the press that the chain’s owner, Hilco Capital, is potentially looking to put a CVA (company voluntary arrangement) in place.
The number of stores to be closed down is thought to be in the range of 50-80, including the 18 that have already closed in recent months. Hilco Capital, a private equity firm, acquired Homebase from Wesfarmers for £1. It followed several years of poor trading performance despite a £340m investment in the DIY retail chain.
It’s been a tumultuous few years for the DIY industry. B&Q has been reviewing its business model, closing 60 stores, and has also pulled its kitchen installation service. While rival Wickes is seeking to capitalise and recently launched a campaign to recruit 900 new staff to keep up with demand for designing and installing kitchens.