Overcast

Overcast

max temp: 21°C

min temp: 13°C

Search

Up to 40 underperforming Homebase stores could close

PUBLISHED: 12:00 08 February 2018 | UPDATED: 14:55 09 February 2018

Homebase owner reveals that up to 40 Homebase stores could be closed resulting in 2,000 jobs lost. Picture: PA

Homebase owner reveals that up to 40 Homebase stores could be closed resulting in 2,000 jobs lost. Picture: PA

Archant

Homebase owner reveals that up to 40 Homebase stores could be closed resulting in 2,000 jobs lost.

Wesfarmers, which owns Homebase’s parent firm Bunnings UK, said trading at the DIY chain had been “poor” as it wrote down its value by £454m – more than the £340m it paid for the company in 2016.

A further £130m will be written off for excess or unsuitable stock and store closure provisions, Wesfarmers said.

The group is in the process of re-branding all 250 Homebase stores as Bunnings Warehouse, with 19 pilot stores – including one in Newmarket – opened in the past 12 months and another in Sprowston due to open later this year.

But underperformance at Homebase stores is expected to drag Bunnings into an underlying loss of £97m for the first half of its financial year.

Wesfarmers also confirmed between 20 and 40 of the worst performing stores could close, but a spokesman for the business said it was too early to speculate on which branches may shut.

Managing director Rob Scott said: “The Homebase acquisition has been below our expectations which is obviously disappointing.

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

He added: “We need to address underperformance in our portfolio that is detracting from positive performance in other areas, and the announcement today sets out decisive actions to achieve this.”

Wesfarmers said that its review will evaluate the performance of rebranded pilot stores to “inform the future plans for Bunnings UK”.

In addition Peter Davis, the man who spearheaded the foray into the UK, is to retire from the business.

A woman has suffered potentially life-changing injuries during a horror crash in Suffolk.

A resolute Suffolk campaigner who has beaten cancer twice is calling on the running community to join her fight against the devastating disease.

The people of Hadleigh have voted to hold a referendum proposing a mass resignation of their town councillors.

A man has been found guilty in connection with a gunpoint kidnap of a 30-year-old man in Ipswich last year.

Former Ipswich mayor Inga Lockington’s attempt to become a British citizen is back on after Home Office staff contacted her to find out details of her life in this country.

Excitement is building for the Women’s Tour as dignitaries take up the chance to ride part of the Suffolk route ahead of the main event next month.

Work started yesterday to demolish one of the best-known pubs in Ipswich.

Suffolk County Council’s new leader has promised a new era of co-operation as he took over the helm at Endeavour House at the authority’s annual general meeting.

For 63 years the Ipswich Operatic and Dramatic Society has entertained thousands with their colourful shows at local theatres.

Take a look at our guide to see which pharmacies in Suffolk and north Essex which will be open this bank holiday Monday, May 28.

Most read

Show Job Lists

Topic pages

Newsletter Sign Up

Ipswich Star daily newsletter
Sign up to receive our regular email newsletter
MyDate24 MyPhotos24