Salisbury's Homebase to close

Salisbury's Homebase to close

Published by Faye Tryhorn at 12:52pm 14th August 2018. (Updated at 2:09pm 25th April 2019)

The Southampton Road store is on the list of 42 branches of the DIY chain to be shutting.

Homebase is set to close 42 stores around the country, putting around 1,500 jobs at risk.

The retailer is closing the stores via a Company Voluntary Agreement (CVA), a controversial insolvency procedure used by struggling firms to shut under-performing shops.

The Salisbury store is on the list, along with Southampton's Hedge End branch and two in Swindon.

There are no dates set for when any closures might take place.

Homebase Southampton Road Salisbury
The Salisbury store is among 42 around the country that are set to be shut, to save the rest of the chain

The CVA mechanism has already been used by retailers including Carpetright, Mothercare and New Look this year.

Restructuring experts at Alvarez & Marsal, the professional services firm, will carry out the CVA, which will require the support of landlords.

A total of 18 Homebase stores have already been shut this year and the business has also axed 303 jobs at its head office in Milton Keynes.

Hilco Capital, which struck a deal to buy the DIY chain for £1 in May, has been working on the CVA since buying Homebase from Wesfarmers, the Australian group which paid £340m for it.

Prior to the Hilco takeover, Homebase had 250 stores at its peak and 12,000 staff.

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