This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.bbc.co.uk/news/business-45180984
The article has changed 6 times. There is an RSS feed of changes available.
Version 2 | Version 3 |
---|---|
Homebase set to close 42 stores | Homebase set to close 42 stores |
(35 minutes later) | |
DIY retailer Homebase is set to announce plans to close 42 stores, putting about 1,500 jobs at risk. | |
Restructuring company Hilco, which bought the DIY chain for £1 in May, is expected to confirm its plans for a Company Voluntary Arrangement (CVA) on Tuesday. | Restructuring company Hilco, which bought the DIY chain for £1 in May, is expected to confirm its plans for a Company Voluntary Arrangement (CVA) on Tuesday. |
It bought the struggling chain from Australia's Wesfarmers after its disastrous foray into the UK market. | It bought the struggling chain from Australia's Wesfarmers after its disastrous foray into the UK market. |
Homebase has 241 stores and 11,000 employees. | Homebase has 241 stores and 11,000 employees. |
A total of 17 Homebase stores have already closed this year and the business has also cut 303 jobs at its head office in Milton Keynes. | A total of 17 Homebase stores have already closed this year and the business has also cut 303 jobs at its head office in Milton Keynes. |
A CVA is a controversial insolvency procedure used by struggling firms to close underperforming shops. | A CVA is a controversial insolvency procedure used by struggling firms to close underperforming shops. |
Restructuring experts at Alvarez & Marsal will carry out the CVA, which will require the support of landlords. | Restructuring experts at Alvarez & Marsal will carry out the CVA, which will require the support of landlords. |
Property owners are left out of pocket by CVAs, although the British Property Federation (BPF) said that in this instance, Alvarez & Marshal and Homebase had consulted with the landlords. | Property owners are left out of pocket by CVAs, although the British Property Federation (BPF) said that in this instance, Alvarez & Marshal and Homebase had consulted with the landlords. |
Business blunders | Business blunders |
CVAs have been adopted by a number of retailers including New Look, Carpetright and Mothercare in recent months. | CVAs have been adopted by a number of retailers including New Look, Carpetright and Mothercare in recent months. |
Stephanie Pollitt, assistant director of real estate policy at the BPF, said: "These situations are never easy, as property owners need to take into consideration the impact on their investors, including those protecting pensioners' savings, as they vote on the CVA proposal. | Stephanie Pollitt, assistant director of real estate policy at the BPF, said: "These situations are never easy, as property owners need to take into consideration the impact on their investors, including those protecting pensioners' savings, as they vote on the CVA proposal. |
"Homebase and Alvarez & Marsal have, however, demonstrated best practice, engaging with the BPF in the process and therefore ensuring property owners' interests have been properly taken into account," she said. | "Homebase and Alvarez & Marsal have, however, demonstrated best practice, engaging with the BPF in the process and therefore ensuring property owners' interests have been properly taken into account," she said. |
"Ultimately, it will be for individual property owners to decide how they will vote on the CVA, but the proposal has sought to find a solution that provides a sustainable future for Homebase." | "Ultimately, it will be for individual property owners to decide how they will vote on the CVA, but the proposal has sought to find a solution that provides a sustainable future for Homebase." |
Wesfarmers bought Homebase in 2016 for £340m and planned to rebrand the chain with its Bunnings brand. | Wesfarmers bought Homebase in 2016 for £340m and planned to rebrand the chain with its Bunnings brand. |
However, the Australian company admitted making a number of "self-induced" blunders, including underestimating winter demand for items such as heaters, as well as dropping popular kitchen and bathroom ranges. | However, the Australian company admitted making a number of "self-induced" blunders, including underestimating winter demand for items such as heaters, as well as dropping popular kitchen and bathroom ranges. |
Catherine Shuttleworth of retail consultancy Savvy said Homebase was a business "under attack from all sides", with alienated customers finding "good alternatives in B&M, supermarkets' own home sections, Wilko and others". | Catherine Shuttleworth of retail consultancy Savvy said Homebase was a business "under attack from all sides", with alienated customers finding "good alternatives in B&M, supermarkets' own home sections, Wilko and others". |
She added: "This will go down in retail history as an example of needing to know the market - retailing is not necessarily globally portable. Chucking out the management was an ill-advised decision." | She added: "This will go down in retail history as an example of needing to know the market - retailing is not necessarily globally portable. Chucking out the management was an ill-advised decision." |