Although not on the list of 42 stores earmarked for closure by the new owners, the Nottingham Queen’s Drive store was recently added, and it is rumoured the number of closures listed could increase by a further 20 stores.
Unlike so many recent household names whose demise has been attributed to failure to take account of increasing online sales, Homebase’s problems appear to stem from a poorly managed takeover of the business in 2016. The business was bought by Bunnings, one of Australia’s biggest DIY chains and a subsidiary of Wesfarmers, for £340-million. As soon as the takeover was completed, the company proceeded to axe all of Homebase’s senior managers, and many of its middle managers. In effect, leaving no-one at the helm with any in-depth knowledge of the UK DIY market.
After years of austerity, and with a slowing down in the UK housing market, Homebase, like many other leisure industries, was already feeling the pinch. Nonetheless, the new owners decided to do things the Australian way. Big is beautiful, and the re-branded Bunnings stores began to fill with high end barbecues and circular saws that could cut down a forest. They also increased the product range by 40%. The result was disastrous, with the business losing over £100-million in the six months up to December 2017.
In an effort to cut its losses, Wesfarmers sold the Homebase brand in early 2018 to Hilco Capital, for the princely sum of £1, but with all its debts. Having already closed 18 branches, this latest list is a further attempt by Hilco, using company CVAs, to further reduce the debt and restructure what remains of the Homebase brand. With job loses already expected to top 2,000, and further closures looking increasingly likely after December 2018, whether any of the Homebase brand remains open by 2020 is open to speculation. At least in the short term, the Nottingham DIY enthusiasts still have a remaining Homebase store they can visit, at Madford Retail Park in Arnold.
News in the same category
Mothercare has obtained agreement to its company voluntary arrangements (CVA), and the restructuring of its finances - at least for the time being.
Croft Carpets in Lincoln have celebrated their tenth anniversary with a move to new larger premises.
A new collaboration between Moschino and H&M has brought an eclectic mix of weird and wonderful fashions to the high street store this November. Unusual items include a swimming costume with printed CDs and condom earrings with the Moschino motif.
When a Japanese womenswear label, famous for its high quality basics, meets a French international style icon, it tickles our curiosity and the fashionista part of our brains somehow gets overheated.
