Essential reading for retailers and suppliers in the home improvement market

Rochdale Bunnings store to reopen as Homebase

Published: 24 August 2018 - Kiran Grewal

Rochdale News has reported that the Bunnings store at Sandbrook Park will reopen as Homebase today.

The publication said following a management buy-out earlier this year, all 24 Bunnings pilot stores will convert to the Homebase brand following completion.

Wesfarmers has agreed to divest the Homebase business in the United Kingdom and Ireland to a management buy-out team led by CEO Damian McGloughlin supported and funded by Hilco, the retail turnaround specialist. Whilst the operating performance of the business had improved in recent months, Wesfarmers took the decision to exit the UK following a comprehensive review of the business.

Homebase was acquired by Australian company, Wesfarmers in 2016. The investment has been disappointing for Wesfarmers, with problems arising from poor execution post-acquisition. 

 

Earlier this month Homebase announced the next phase of its restructuring plan, the company is to launch a Company Voluntary Arrangement (CVA) and is seeking approval from creditors on a proposed plan to reduce its cost base in the UK and the Republic of Ireland.

Homebase’s sales performance and profitability declined significantly under the previous ownership over the last two years. In addition, the company has faced an extremely challenging retail trading environment reflecting weak consumer confidence and reduced consumer spending. These factors have had a significant adverse impact on Homebase’s trading position. 

After a comprehensive review, Homebase has concluded that its current store portfolio mix is no longer viable. Rental costs associated with stores are unsustainable and many stores are loss making. 

The CVA enables Homebase to make essential changes to its store portfolio, reducing its cost base and providing a stable platform on which to continue its turnaround.

Source: Rochdale News

Comments


(Your email address will not be published)
Already Registered?
Sign In
Not Yet Registered?
Register
Printable View E-mail Bookmark
*

What do you think?


As a retailer, what do you struggle most with in the adhesives & sealants category?





Latest reader comments

re: Toolstation.com excels in Which? website survey

Ray Pearce
Toolstation is always straight forward from ordering from the catalogue to receiving the items and a comfortable welcoming place to browse ...

re: Better Bathrooms goes into administration

Carolyn Muggleton
HiWe purchased a shower enclosure from Better Bathrooms which we have returned to them and asked for our money back.. The amount we ...

re: Woolworths staff reunited by new website

Pam Jones
looking for Brian Finch who worked as an undermanager to Mr. Cotton in Ebbw Vale woolworths....

re: 13-year-old's invention goes into production

Gel
No point in responding to an 8 year old post!...

re: Capitol Tiles outlets snapped up by BC Ceramics

Beryl smith
Hi I bought some black tiles called night black by capitol tiles I need some spares do you know where I can get them thanks Beryl...

Most read stories