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Homebase to Close Bournemouth Store

Homebase Bournemouth Clearance Store shutterstock_1157433904 725 x 500.jpg

Homebase has decided to close its Bournemouth branch after it failed to negotiate an ongoing rent reduction for the site.

The store has been operating as a Clearance Outlet and has not offered special order kitchens, bathrooms, local delivery service, paint mixing or hire shop services since early 2018.

The store had negotiated a significant reduction on the rent at the Mallard Road site, which is owned by Bournemouth, Christchurch and Poole Council, following the company's decision to enter into a CVA.  Homebase was paying annual rent of £92,000 instead of £920,000, and was due to renegotiate the fee from the 1st July this year. 

The retail park on which Homebase sits was purchased for £49m in 2017 and the council has said it is close to agreeing a deal with a new tennant. 

Local press has reported that the store will close in September.

Bournemouth, Christchurch and Poole Council's cabinet member for finance said: “Cabinet on February 20 approved the terms of a new lease for the whole of Unit 1, the unit occupied by Homebase currently, and gave authority to terminate the current agreement with Homebase.

“That termination has not yet been served and under the terms of the lease, there is no provision for either the council or Homebase to do so until November this year.

“Whilst we have not received any formal notification of Homebase’s intention to break their lease, it is not unexpected given the cabinet decision.

“However, it is disappointing that Homebase appear to be preparing to close this store earlier than necessary when several further months of trading from the unit are possible.

“In the meantime, we are finalising terms for the letting of the whole of the unit to another operator, although we cannot comment further on this matter due to commercial sensitivity.”

Earlier this year the council granted permission to convert the Homebase store into two smaller units, to make the retail park more attractive to tenants.

Source : Insight DIY Team

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12 August 2019

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