skip to main content
  • *
  • *
  • *
Find Insight DIY on
* * *


Homebase landlords considering legal action over CVA

Homebase store angled 725 x500

A number of landlords likely to be affected by Homebase's CVA proposal are understood to be considering legal action.

Professional services companies Begbies Traynor and Hogan Lovells have been appointed by separate groups of landlords over Homebase's plans to offer them reduced rental payments of between 20-90%.

Aberdeen Standard Investments and M&G are two landlords looking to take action against the business, having hired Hogan Lovells to push back against the CVA proposal which would see them experience a sudden loss of income from the affected properties.

CVAs are increasingly being used to reduce overheads for ailing businesses and has led to property owners accusing retailers of using the agreements to force landlords to bail them out.

Last week, The Times revealed it had seen a document that stated 70% of Homebase stores are losing money.  

Alvarez & Marsal's head of restructuring, Richard Fleming, has said that the CVA process is a "vital lifeline" for Homebase, stating that it would secure the the long term future of the brand for the benefit of "all stakeholders". 

If creditors vote against the CVA, it is likely that Homebase will enter administration. The vote takes place on Friday 31st August.

Source : Insight DIY

For all the very latest news and intelligence on the UK's largest home improvement and garden retailers, sign up for the Insight DIY weekly newsletter.


28 August 2018

Related News

view more UK DIY News

Insight provides a host of information I need on many of our company’s largest customers. I use this information regularly with my team, both at a local level as well as with our other international operations. It’s extremely useful when sharing market intelligence information with our corporate office.

Paul Boyce - European CEO, QEP Ltd.

Don't miss out on all the latest, breaking news from the DIY industry