Furnishings set to return at Homebase
Homebase owner Hilco is set to bring back furniture and furnishings concessions after creditors, including more than 95% of landlords, approved the chain’s CVA.
Under its terms 42 of its 241 stores will be closed, with the loss of about 1,500 jobs, and rents cut by between 25% and 90% on 70 stores. 70% of stores are currently loss making.
Hilco plans to inject £25m of cash as well as raising £116m of debt to help finance the turnaround.
Former owner Bunnings closed Habitat and Laura Ashley concessions as it concentrated on the heavier-end of the diy market. The chain told creditors it would try and bring in other concessions as well.
‘We are pleased that an overwhelming majority of our creditors, including such a proportion of landlords, have supported the plans laid out in the CVA,’ says Damian McGloughlin, Homebase chief executive.
‘We now have the platform to turn the business around and return to profitability. This has been a difficult time for many of our team members and I am very grateful for their continued support and hard work.’