Warrington Homebase Store to Close

Warrington and Macclesfield Homebase stores are to close after the garden and DIY retail announced its intention to axe 42 of 142 outlets within the next 16 months.

The retailer, which has been undergoing troubles of late, was acquired by restructuring firm Hilco for a mere £1 from its former owner, Australian retail company Wesfarmers. The company had paid £340 million for Homebase in 2016.

Company Voluntary Arrangement

Hilco has set out a Company Voluntary Arrangement for the firm, which includes the closure of 42 stores throughout the UK. The North West has only two stores that are set to close- Warrington and Macclesfield. The Warrington store is based at Riverside Retail Park. The Macclesfield store is located off the A523 alongside Super Bowl and Matalan. Three stores will close in London, in addition to seven stores being axed in Scotland. Other North West stores, including a number in Merseyside in areas such as Upton and Formby, as well as stores in Greater Manchester including Altrincham, Bredbury, and Horwich will avoid the axe. In Lancashire, Clitheroe, Preston Riversway, and Morecambe will continue to serve the public.

1,500 jobs in danger

Homebase has already pulled the plug on 17 stores just this year and 303 members of staff have been cut at the retailer’s headquarters in Milton Keynes. The firm said that the latest closures could see up to 1,500 jobs on the line. Restructuring company Alvarez and Marsal is carrying out Homebase’s CVA.

Homebase has been unable to compete in a changing commerce landscape, although it’s just one of many well-known brands we have seen close stores within the past few years. House of Fraser, Mothercare, and Marks & Spencer are just some of the more recent examples of companies having announced store closures for 2018. Everything from restaurants and department stores to supermarkets and banks are feeling the pinch as more and more people are shopping online and have less to spend on high street prices.

More choice online

It isn’t just reduced expense that these stores are competing with, either. More payment options are also attracting more customers to take their business online. Not only has PayPal become a hugely popular option in the online payment space, we’ve also recently seen cryptocurrencies such as bitcoin gain legitimacy in online transactions. Bitcoin has taken the online world by storm in consumer spending, as well as trading for the entrepreneurially-minded. The latest development in the digital currency is something known as a bitcoin robot trader, keeping a constant eye on the market. It allows traders to jump on opportunities while the trader is otherwise busy or asleep, providing them with further returns in the process.

Limiting the damage

Damian McGloughlin, chief executive of Homebase, said that they didn’t take the decision to close the stores lightly. McGloughlin conceded that while he recognises Homebase has been among the more recognisable brands in retail for close to four decades, the reality is that they need to continue taking action to address the business’ poor performance, handle the burden of the cost base, and protect thousands of jobs.

Homebase’s profitability and sales performance significantly declined within the last two years under the previous ownership. The firm said that it has been forced to face a challenging retail trading environment due to reduced customer spend and low consumer confidence.

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from Warrington Worldwide https://www.warrington-worldwide.co.uk/2018/08/29/warrington-homebase-store-to-close/
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