Homebase owners look to close stores after poor trading

Nearly 2000 Homebase employees could face the axe as DIY chain’s owners launch review into the business.

Homebase owners Wesfarmers, who own Homebase’s parent firm Bunnings UK, said on Monday that trading at the chain had been “poor” as it booked a £454 million write off linked to its acquisition of the retailer.

In a statement, Wesfarmers managing director, Rob Scott said: “The Homebase acquisition has been below our expectations which is obviously disappointing.

“In light of this, as review of Bunnings UK has commenced to identify the actions required to improve shareholder returns.”

The group have confirmed that between 20 and 40 of the worst performing Homebase stores could close down.

Colchester is currently home to two Homebase stores with one site in Stanway and the other located near the town centre. Both are due to be re-branded Bunnings later this year.

Homebase operates from 250 stores and employes 12,000 people in total in the U.K.

The Australian giant Wesfarmers purchased the Homebase chain in 2016 in a deal worth £340 million.