Site icon Inside Croydon

Purley Way Homebase included on list of stores facing closure

insidecroydon

Croydon’s branch of Homebase is among 42 stores under threat of closure, as the struggling DIY retailer seeks a survival deal.

Huffington Post provided a list this morning which includes the store located off the Purley Way.

Around 1,500 jobs are at risk nationally as a consequence of the proposed closures, an estimated 30 of them in Croydon.

Homebase carried out a closure programme in February, when 17 stores ceased trading. Homebase currently has 241 stores in the UK. The retailer has also axed 303 jobs at its Milton Keynes head office.

The DIY and garden supplies store was originally founded by Sainsbury’s, but for a decade from 2006 was owned by Home Retail Group, who also operate Argos and Habitat. In 2016, they sold Homebase to Wesfarmers for £340million, but by the beginning of this year they were unloading the business for a token £1 to “retail turnaround specialist” Hilco.

Today, the DIY retailer confirmed that it is seeking to close the stores via a Company Voluntary Agreement (CVA), a procedure used by struggling firms to shut under-performing shops, while some of its suppliers and landlords carry some of the costs through providing relief on debt. Homebase’s creditors and landlords will vote on whether to accept the terms of the CVA on August 31.

Dave Gill of Usdaw, the shopworkers’ union, said: “Homebase staff feared the worst when the company was sold for just £1 following the disastrous ownership by Wesfarmers.

“I am seeking urgent clarification from owners Hilco about their long-term plan to turn the company around. All too often, staff are excluded from the CVA process as the future of their jobs are being decided.

“Clearly there is a huge task ahead, it is crucial that the company listens to the staff and invests in their experience and expertise to turn the business around and again make it a success.”

In a statement issued on this morning, Damian McGloughlin, the Homebase CEO, 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.”


Exit mobile version