Wesfarmers’s bosses bagged over £500k in termination payments despite Homebase disaster

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Wesfarmers’ former bosses received nearly A$1 million (£760,000) in termination payments despite overseeing the disastrous acquisition of Homebase.

Around seven months before Wesfarmers was forced to sell its Homebase chain for £1 after incurring millions in losses amid a failed takeover attempt, the Australian conglomerate’s then chief executive Richard Goyder and chief financial officer Terry Bowen received A$968,720 (£532,087) and A$950,196 (£522,025) respectively.

These payments, given to the pair when they left the retailer in November last year, were dished out despite Wesfarmers pre-tax profits for the year dropping 58 per cent to A$1.2 billion (£659 million).

After purchasing Homebase in 2016 in an attempt to use it as a springboard into the UK market by gradually converting it into its Bunnings fascia, it subsequently made hundreds of millions in losses and was forced to sell it in May at a $375 million (£295 million) loss.

Since it was sold in May the Homebase has approved a company voluntary arrangement (CVA) which is due to see 42 stores close placing around 1500 jobs in jeopardy.

More than 70 per cent of Homebase stores are understood to now be losing money following the failed acquisition.

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