Diy retailer Homebase is set to announce plans to close 42 stores, putting around 1,500 jobs at risk.
Restructuring company Hilco, which bought the chain of diy for £1 in May, is expected to confirm its plans for a Company Voluntary Arrangement (CVA) on Tuesday.
He bought the fight chain from Australia Wesfarmers after its disastrous foray into the UK market.
Homebase 241 stores and 11,000 employees.
A total of 17 Homebase stores have already closed this year, and the company has also cut 303 jobs at its headquarters in Milton Keynes.
A STROKE is a controversial insolvency procedure used by struggling firms to close stores in underperforming.
Restructuring experts Alvarez & Marsal, who will make the CVA, that require the support of the owners of the house.
The owners are left out of pocket by Csav, even if the British Property Federation (BPF) said that, in this case, Alvarez & Marshal, and Homebase had consulted with the owners of the house.Business errors
Csav have been adopted by a number of retailers including New Look, International and Mothercare in the past few months.
Stephanie Pollitt, assistant director of real estate policy at the BPF, said: “These situations are never easy, as the owners of real estate must take into account the impact on their investors, including those to the security of pensioners with savings, as the vote on the CVA proposal.
“Homebase, and Alvarez & Marsal, which have, however, demonstrated best practices, to engage with the BPF in the process, and, therefore, ensure the property owners interests have been adequately taken into account,” he said.
“In the final analysis, it will be for individual owners to decide how to 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 is scheduled to change the chain with the Bunnings brand.
However, the Australian company has admitted making a number of “self-induced” errors, including underestimating the winter demand for the heating elements, as well as dropping the popular kitchen and bathroom ranges.
Catherine Shuttleworth retail consulting Experts, said Homebase was a business “under attack from all sides”, with alienated customers, the search for “good alternatives in B&M, supermarkets at home sections, Wilko and others.”
He added: “this will be going into detail about the story as an example of the need to know the market – the retail trade is not necessarily at the global level laptop. Tighten the management on ill-considered decision.”