Homebase rescue plan approved

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Homebase creditors have voted in favour of a rescue plan that will see the 42 shops are closed.

The managing director of Homebase, said that the company voluntary arrangement (CVA) would help turn the business around and return to profitability.

Some owners had planned to vote against the CVA, complain that they were unjustly treated.

Homebase was acquired by Hilco Capital for £1 in the month of June. Plans to invest £ 25 million to revive the diy chain.

“We now have the platform to turn around the business and profitability,” said chief executive Damian McGloughlin.

“We can look to the future with great confidence, and we will continue to work closely with our suppliers to capitalize on the opportunities we see in the home improvement market in the UNITED kingdom and in Ireland,” he added.Blunders

Homebase has suffered a tough few years.

Australia’s Wesfarmers bought the retailer for £340m in 2016, but has sold this year, booking a £770m loss.

He is accused of a series of errors, including underestimating the winter demand for the heating elements and fall popular, kitchen and bathroom ranges.

Homebase, which has about 250 stores and 11,500 staff, now plans to bring back popular brands and concessions, such as Laura Ashley and Habitat.

His new owner, Hilco, has revived the fortunes of other retailers and is best known for the downloading of music chain HMV by the administration in 2013.

However, the restructuring specialist also tried to save Allders and the like, Carpets, both of which later went into administration.