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Over 95% of Homebase creditors vote in favour of CVA

Homebase Grantham 725 x 500

Homebase's creditors have today (31st August, 2018) voted in favour of a Company Voluntary Arrangement (CVA), with 95.92% of creditors backing the plan.

Homebase will now close 42 of its 241 stores during late 2018 and early 2019, leaving 1,500 people at risk of losing their jobs.

Owner, Hilco Capital, had previously agreed to invest around £25 million in the business should the CVA plan be approved. 

The Financial Times reported earlier his week that it had seen a document intended for creditors which stated that over 70% of Homebase's stores are losing money.

Damian McGloughlin, CEO of Homebase, said:

“We are pleased that an overwhelming majority of our creditors, including such a proportion of landlords, have supported the plans laid out in the CVA. We now have the platform to turn the business around and return to profitability. This has been a difficult time for many of our team members and I am very grateful for their continued support and hard work.

“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.”

Several landlords were considering legal action against Homebase's plans to slash rent payments as part of the CVA.  At this stage, it is unclear if they will continue this line of action.

The affected stores are as follows and there's a map showing the closing stores here:-

Aberdeen Bridge of Don
Aberdeen Portlethen
Aylesbury
Bedford St Johns
Bradford
Brentford
Bristol
Canterbury
Cardiff Newport Road
Croydon Purley Way
Droitwich
Dublin Fonthill
Dublin Naas Road
Dundee
East Kilbride
Exeter
Gateshead
Grantham
Greenock
Hawick
Inverness
Ipswich
Limerick
London Merton
London New Southgate
London Wimbledon
Macclesfield
Oxford Botley Road
Peterborough
Pollokshaws
Poole Tower Park
Robroyston
Salisbury
Seven Kings
Solihull
Southampton Hedge End
Southend
Stirling
Swindon Drakes Way
Swindon Orbital
Warrington
Whitby

We will bring you further news on this story as we learn more. 

Source : Insight DIY

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01 September 2018

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