Hilco Capital, new owner of Homebase is expected to announce putting the DIY chain into a Company Voluntary Arrangement (CVA).
This would result in 42 of Homebase's 250 stores being closed, with 1500 jobs at risk.
Turnaround specalists, Alvarez & Marsal will carry out the CVA. They require the agreement and support of landlords, which could be a struggle as it is thought for some resistance of landlords due to them believing to be 'left out of pocket'. Despite this, the British Property Federation have remarked that in this instance, both the advisors and directors have already consulted with landlords.
So far this year, 17 Homebase stores have shut, as well as 303 jobs lost at the Milton Keynes head office.
This news comes at no surprise, amidst the Current British High Street Crisis. New Look, Mothercare and Carpetright have also used CVAs and had to cut stores to survive. A CVA is a way to help a financially struggling firm restructure it's debts and pay back creditors over time.
Both Hilco and Homebase decline to comment, though an official announcement is expected later today.
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Here is the list of stores due to close
Aberdeen Bridge of Don
Bedford St Johns
Cardiff Newport Road
Croydon Purley Way
Dublin Naas Road
Glasgow East Kilbride
Ilford Seven Kings
London New Southgate
Oxford Botley Road
Poole Tower Park
Southampton Hedge End
Swindon Drakes Way