Clitheroe Homebase saved from closure

Clitheroe Homebase store will not close
Clitheroe Homebase store will not close
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The town's Homebase store has avoided the axe as the DIY giant announced 42 stores are set to close.

Staff at the local branch will keep their jobs as a result, but around 1,500 workers across the UK could now lose their jobs.

A company spokesman said: "Homebase’s sales performance and profitability declined significantly under the previous ownership over the last two years. In addition, the company has faced an extremely challenging retail trading environment reflecting weak consumer confidence and reduced consumer spending. These factors have had a significant adverse impact on Homebase’s trading position.

"After a comprehensive review, Homebase has concluded that its current store portfolio mix is no longer viable. Rental costs associated with stores are unsustainable and many stores are loss making.

"The company is to launch a Company Voluntary Arrangement (CVA) and is seeking approval from creditors on a proposed plan to reduce its cost base in the UK and the Republic of Ireland.

"The CVA enables Homebase to make essential changes to its store portfolio, reducing its cost base and providing a stable platform on which to continue its turnaround. Under the terms of the CVA proposal, all creditors receive a better outcome than any other likely alternative."

It is anticipated that 42 stores will close during late 2018 and early 2019. The firm confirmed the Clitheroe store in Queensway is to remain open.