Homebase to close 10 Scottish stores

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Homebase is to close a total of 42 stores in the latest phase of its restructuring

Homebase is to close 10 of its Scottish stores, the struggling DIY retailer has confirmed.

The move will potentially threaten hundreds of jobs and leave Homebase with just seven stores in Scotland.

The Scottish stores are among 42 across the UK that are to close over the next 16 months.

Restructuring company Hilco, which bought Homebase for £1 in May, says it is planning a Company Voluntary Arrangement (CVA).

A CVA is a controversial insolvency procedure used by struggling firms to shut under-performing shops. They have been adopted by a number of other retailers in recent months, including New Look, Carpetright and Mothercare.

The Homebase stores that are to close in Scotland are:

  • Aberdeen Bridge of Don

  • Aberdeen Portlethen

  • Dundee

  • East Kilbride

  • Greenock

  • Hawick

  • Inverness

  • Glasgow Pollokshaws

  • Glasgow Robroyston

  • Stirling

Homebase has already closed 17 stores across the UK this year, and axed 303 jobs at its headquarters in Milton Keynes.

It currently has about 240 outlets and employs 11,000 people - about 1,500 of whom will be affected by Tuesday's announcement.

Homebase said staff at closed stores will be redeployed within the business where possible. It has been unable to say how many staff will be affected in Scotland.

Homebase chief executive Damian McGloughlin said: "Launching a CVA has been a difficult decision and one that we have not taken lightly.

"Homebase has been one of the most recognisable retail brands for almost 40 years, but the reality is we need to continue to take decisive action to address the under-performance of the business and deal with the burden of our cost base, as well as to protect thousands of jobs.

"The CVA is therefore an essential measure for the business to take and will enable us to refocus our operations and rebuild our offer for the years ahead."

Hilco bought Homebase from Australian company Wesfarmers, which had planned to rebrand it as Bunnings after paying £340m for the chain in 2016.

But Wesfarmers admitted making a number of "self-induced" blunders, including underestimating winter demand for items such as heaters, as well as dropping popular kitchen and bathroom ranges.