Further Homebase closures ahead
Published: 12 July 2019 - Fiona Garcia
As Homebase struggles to agree new rent terms with landlords and continues to review its estate under the terms of its CVA, yet more stores are set to close in coming months.
It has been revealed that the Homebase store on Newbury Retail Park will cease trading on September 5, with suggestions that Aldi may be lined up to take on the retail unit. The Homebase in Brecon will also close its doors in coming months, although an official date is yet to be confirmed, whilst another store on Hylton Road in Worcester has to be vacated by August 30 ready for The Range to move into the site.
Following Hilco’s acquisition of Homebase from Bunnings’ parent Wesfarmers, creditors voted in favour of a company voluntary arrangement (CVA) last August, when the business announced it would be closing around 42 of its stores towards the end of last year and early 2019. However, with a number of other branches set to cease trading, or which have already closed their doors, the final figure is expected to be much higher. Under the agreement landlords were able to terminate leases from July 1.
The 42 stores announced in the first round of closures were:
Aberdeen Bridge of Don
Bedford St Johns
Cardiff Newport Road
Croydon Purley Way
Dublin Naas Road
London New Southgate
Oxford Botley Road
Poole Tower Park
Southampton Hedge End
Swindon Drakes Way
A Homebase spokesperson explained: “Since the launch of our CVA in August 2018, we have been in conversations with landlords to secure the right rents as part of our efforts to address our fixed cost base.
“Under the terms of our CVA, landlords have the opportunity to end their lease on July 1, 2019, if they would like to pursue other opportunities for the store.”
With regards the latest round of closures, which includes Abingdon, Brecon, Cheltenham, Grantham, Hemel Hempstead, Kingston, Loughton, Market Drayton, Newbury, Rochdale, Sandbach, and Worcester (Hylton Road), Homebase said: “we have been unable to come to an agreement that works for both parties and as such, landlords for these stores have exercised their right to end the lease… Our priority is to support our affected team members who have shown us loyalty and energy throughout what has been an unsettling time.”
Speaking to staff at several of these stores, Homebase is yet to confirm a final closing date and they will remain trading until such a time.
A number of other stores that were not announced as part of the initial round of closures have also ceased trading in recent months, including the following: