Homebase rescue plan voted through by creditors

Homebase creditors have voted in favour of a rescue plan that will see 42 stores closed.

The chief executive of Homebase said the company voluntary arrangement (CVA) would help turn the business around and return it to profitability.

Some landlords had planned to vote against the CVA, complaining that it treated them unfairly.

Homebase was bought by Hilco Capital for £1 in June. It plans to invest £25m to revive the DIY chain.

“We now have the platform to turn the business around and return to profitability,” said chief executive Damian McGloughlin.

“We can look to the future with great confidence, and we will be working closely with our suppliers to capitalise on the opportunities we see in the home improvement market in the UK and Ireland,” he added.

Blunders

Homebase has endured a turbulent few years.

Australia’s Wesfarmers bought the retailer for £340m in 2016 but sold it on this year, booking a £770m loss.

It blamed a series of blunders, including underestimating winter demand for items such as heaters and dropping popular kitchen and bathroom ranges.

Homebase, which has about 250 stores and 11,500 staff, now plans to bring back popular brands and concessions such as Laura Ashley and Habitat.

Its new owner, Hilco, has revived the fortunes of other retailers and is best known for rescuing music chain HMV from administration in 2013.

However, the restructuring specialist also tried to rescue Allders and Allied Carpets, both of which later went into administration.