Homebase in the UK to close 80 stores
Inside Retail reported that UK-based hardware retailer Homebase is set to close approximately 80 of its stores. The retailer says that the move will affect up to 1,000 employees, though other sources put the number of displaced employees at closer to 2,000. The struggling chain is expected to file a company voluntary arrangement. Hilco Capital purchased the chain from Wesfarmers for a nominal sum earlier this year after what Wesfarmers managing director Rob Scott called a “disappointing” investment. Wesfarmers said the deal would record a loss of between $350 to $406 million after purchasing the business just two years ago, but that it would remain eligible for 20% of equity that arises should Hilco sell Homebase in the future.