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sancho panza

Homebase considering CVA:?100's of job losses?

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More bad news for CRE LL's.

Not sure if this was mentioned before on ToS.So much bricks n mortar bad news you forget what's already out there.

https://www.retailgazette.co.uk/blog/2018/06/homebase-consider-cva-threatening-hundreds-jobs/

'Homebase is reportedly considering launching a CVA which could see up to 40 stores shut and hundreds of staff be made redundant.

According to the Press Association the embattled retailer, which was recently sold to restructuring specialist Hilco Capital for just £1, is hunting for advisors for a potential CVA.

It is understood that Alvarez & Marshal have been contacted by the DIY chain to explore the insolvency procedure, alongside other options.

Homebase’s management are thought to be cautious of the plans for a CVA, which has recently proved a contentious issue with landlords, who often have to foot the bill for failing retailers.

This comes just a day after it announced 303 job cuts at its head office in Milton Keynes, representing around a third of its staff at the location.

Its current financial woes follow a disastrous £340 million acquisition by Australian company Wesfarmers in 2016.

In an attempt to rapidly convert Homebase’s UK estate into its Bunnings fascia and crack the UK market, it recorded a loss of between £200 million to £230 million.

The CVA would come on top of a store closure programme that it has been undergoing since February, and which has already seen 17 Homebase stores shut and 23 more earmarked for possible closure.

Reports have also emerged that between 80 and 100 of Homebase’s 150-strong store estate could now face the axe – significantly bigger than Wesfarmers’ original plans to close down between 20 and 40 underperforming stores.

When the £1 sale to Hilco is completed, 24 Bunnings stores will also be converted back into their original Homebase fascia.'

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Posted (edited)
4 hours ago, Banned by HPC said:

Amazing what happens when the govt force 2 generations into renting from people who spend the bare minimum on maintenance, decorating and gardening.

And when the volume of house sales slows to trickle, as new owner occupiers spend the most on home improvements.

Mind you Homebase is shite, and the market is also pretty crowded with Wickes, Screwfix, Toolstation, B&Q offering similar products at more competitive prices.

I'm not surprised it's in trouble and will not mourn its passing.

Edited by InLikeFlynn

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17 hours ago, Banned by HPC said:

Amazing what happens when the govt force 2 generations into renting from people who spend the bare minimum on maintenance, decorating and gardening.

Yep, you don't DIY when its not your place and with the slumlords price is everything - I've heard DBP - done by poles, not only is there no positive labour demand locally they fill up those European small curtain liner box vans with cheap materials and supplies and shift the whole lot over. Always wondered why there never seemed to be many EU'ers at the trade suppliers. Complete fuck up economically as all that lost tax that would otherwise have been collected on the lot. 

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