Homebase closures: Branches in Cannock, Wolverhampton and Telford could close despite rescue deal for ailing DIY firm
Three stores in the West Midlands could be under threat of closure as the chain looks set to shut 49 of its UK branches.
The firm, which reported an £84.2 million loss last year, had been placed into administration on Wednesday (November 13) but a rescue deal with retail group CDS later that day secured up to 1,600 jobs.
The DIY chain has stores in Cannock, Wolverhampton and Telford as well as other nearby outlets in Newcastle-Under-Lyme and Birmingham.
In August, Sainsbury’s struck a deal to buy 10 Homebase stores and convert them into supermarkets, and while yesterday's announcement secured a further 70 stores, the future of its remaining 49 shops and some 2,000 workers remains unclear.
Homebase administrators Teneo said they would not be able to provide a list of stores set to close "at this stage", but had earlier said the remaining 49 UK stores will continue to trade as normal while administrators try to find a buyer.
New owner CDS, which is owned by retail magnate Chris Dawson, also operates The Range homeware outlets but the firm has not yet said whether the 70 stores brought into the company will be rebranded. The firm also bought parts of high street retailer Wilko after it collapsed last year.
Damian McGloughlin, chief executive of Homebase, said the last three years had been “incredibly challenging” for DIY stores, blaming “a decline in consumer confidence and spending” after the pandemic.
“Against this backdrop, we have taken many and wide-ranging actions to improve trading performance including restructuring the business and seeking fresh investment," he said.
“These efforts have not been successful and today we have made the difficult decision to appoint administrators.”
The administrators said all employee wages and benefits will be paid for their period of employment, while customer orders will still be fulfilled as far as possible.
