Homebase is due to officially announce its CVA plans later today, set to see dozens of stores close and over 1000 jobs placed in danger.
Following news last week that the embattled DIY retailer’s new owners Hilco were planning to launch a CVA, it will officially announce plans to shut 42 stores today and threatening 1500 jobs.
It is understood that Hilco has been planning to launch a CVA since it purchased Homebase for just £1 in May and have enlisted the help of Alvarez & Marshall to handle the process.
This follows 17 store closures since the start of the year and 303 job cuts at its head office.
The CVA will still require approval from 75 per cent of its landlords before it can go ahead.
CVA’s have become a hot button issue for landlords, who are faced with vacant stores and reduced rents after a retailer enters the insolvency process.
The home and DIY retailer’s financial woes come after the Australian retail conglomerate Wesfarmer’s short-lived attempt to use it as a springboard into the UK market.
After purchasing the company in 2016, Wesfarmers began to convert Homebase stores to its Bunnings fascia, resulting in a loss on the disposal of between £200 million to £230 million and forcing it to jump ship and sell the UK arm of company to Hilco for £1.