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Homebase rescue plan voted through by creditors

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Homebase creditors have voted in favour of a rescue plan that will result in 42 stores closing.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.Hilco Capital, which bought the retailer for
"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."
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This year 16 stores have been shut with another 42 earmarked for closure by early 2019, putting 1,500 jobs at risk. The professional services firm Alvarez & Marsal will carry out the CVA.
The rescue deal for Homebase follows a turbulent few years.Australia's Wesfarmers bought the retailer for ?340m in 2016 and rebranded the chain as Bunnings. It made a series of blunders, including underestimating winter demand for items such as heaters and dropping popular kitchen and bathroom ranges, sending sales sliding. Wesfarmers took a ?770m loss after selling Homebase.The new owners of the chain, which has about 250 stores and 11,500 staff, now plans to bring back popular brands and concessions such as Laura Ashley and Habitat.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.
Retailing
Milton Keynes
Companies
Homebase
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