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Homebase CVA Plans

14 August 2018

Homebase CVA Plans

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. 

If you are a Homebase employee and are concerned about your rights, please see our page for more advice by clicking here 

Here is the list of stores due to close

Aberdeen Bridge of Don

Aberdeen Portlethen

Aylesbury

Bedford St Johns

Bradford

Brentford

Bristol

Canterbury

Cardiff Newport Road

Croydon Purley Way

Dublin Fonthill

Dublin Naas Road

Dundee

Exeter

Gateshead

Glasgow East Kilbride

Glasgow Pollokshaws

Glasgow Robroyston

Grantham

Greenock

Hawick

Ilford Seven Kings

Inverness

Ipswich

Limerick

London Merton

London New Southgate

London Wimbledon

Macclesfield

Oxford Botley Road

Peterborough

Poole Tower Park

Salisbury

Solihull

Southampton Hedge End

Southend

Stirling

Swindon Drakes Way

Swindon Orbital

Warrington

Whitby

Worcester Droitwich

Categories: Retail, CVA, What is a CVA or Company voluntary arrangement?

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