Seven Kings Homebase among 42 stores that could close
PUBLISHED: 14:12 14 August 2018
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It is anticipated that 42 stores will close and that could mean the loss of around 1,500 jobs.
The Homebase store in Seven Kings could be closing after it was announced today that it would be closing 42 store across the country.
Today (Tuesday, August 14) the company said that it is going to launch a Company Voluntary Arrangement (CVA) and is seeking approval from creditors on a plan to close stores across the UK.
It is anticipated that 42 stores will close during late 2018 and early 2019 - and the store in High Road could be one of them.
This could also lead to the loss of up to 1,500 jobs - however the company has said that “every effort will be made to redeploy team members within the business where possible.”
Homebase has said that at the moment stores in the UK will remain open for business as usual and this process will have no impact on customer purchases, outstanding orders or any product or service guarantees.
The creditors will vote on the CVA at the end of this month.
Damian McGloughlin, CEO of Homebase, said: “Launching a CVA has been a difficult decision and one that we have not taken lightly.
“Homebase has been one of the most recognisable retail brands for almost 40 years, but the reality is we need to continue to take decisive action to address the underperformance of the business and deal with the burden of our cost base, as well as to protect thousands of jobs.
“The CVA is therefore an essential measure for the business to take and will enable us to refocus our operations and rebuild our offer for the years ahead.”
Stephanie Pollitt, Assistant Director of Real Estate Policy, British Property Federation (BPF), said: “These situations are never easy as property owners need to take into consideration the impact on their investors, including those protecting their investors’ 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.
“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.”
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