Homebase to Close 42 Stores, Up to 1,500 Jobs at Risk
August 14 2018 - 8:53AM
Dow Jones News
By Maryam Cockar
Homebase said Tuesday that it will close 42 stores, putting up
to 1,500 jobs at risk, as part of a rescue deal with its
creditors.
The home-improvement retailer said it will seek approval from
its creditors to launch a company voluntary arrangement to shore up
its finances. The company voluntary arrangement, a type of
insolvency that allows a company to close underperforming stores
and renegotiate rents with landlords, will be voted on by creditors
on Aug. 31.
Homebase said its sales performance and profitability declined
significantly under the previous ownership during the last two
years. Hilco bought Homebase for one pound ($1.27) in May from
Australia's Wesfarmers Ltd. (WES.AU) who bought the retailer for
340 million pounds ($433.7 million) in 2016.
The 42 stores are expected to close during late 2018 and early
2019, resulting up to 1,500 jobs cuts. Homebase said it will aim to
redeploy staff where possible.
Write to Maryam Cockar at maryam.cockar@dowjones.com
(END) Dow Jones Newswires
August 14, 2018 08:38 ET (12:38 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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