Homebase is cutting 300 jobs at its Milton Keynes head office amid speculation that up to 80 stores will close after its takeover by the restructuring specialist Hilco.
The loss-making DIY chain was bought by the owner of HMV for £1 in a deal agreed in May after its previous Australian owner, Wesfarmers, pulled the plug on a “disastrous” venture into the UK.
Wesfarmers, which bought the business for £340m two years ago, offloaded the entire 250-store Homebase chain, which has a workforce of just over 11,000 people, ditching a plan to convert them to its Bunnings brand.
Homebase said a third of its head office staff would leave by November as it focused on its DIY brand. All 24 of the stores rebranded to Bunnings will become Homebase outlets again.
Damian McGloughlin, the chief executive of Homebase, said: “We have not taken this decision lightly but decisive action is required to start rebuilding Homebase’s position in the UK market. We will be providing as much support as we can to help those affected through this difficult time.”
The job cuts come amid speculation that Homebase is considering a company voluntary arrangement, a form of insolvency, which would enable it to close up to 80 stores and renegotiate leases with landlords.
The company has already shut 17 unprofitable stores and confirmed plans to close at least 23 more. Industry insiders say that a CVA involving between 60 and 80 stores is one of a number of options being considered by Homebase’s new owner.
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