Unclear if Homebase store closures will affect Irish outlets

The DIY retailer looks set to close around one quarter of its outlets

Unclear if Homebase store closures will affect Irish outlets

File photo of the Homebase store in Santry, Dublin, 16-07-2013. Image: Laura Hutton/RollingNews

It is unclear if any Irish stores will be affected by DIY chain Homebase's plan to close up to 80 outlets.

The chain's new owner will reportedly unveil plans to close about a quarter of its stores next week, putting more than 1,000 jobs at risk.

Hilco Capital, which bought the chain for a nominal sum in May, is expected to outline a Company Voluntary Arrangement (CVA) that could pave the way for roughly 60 of Homebase's 249 outlets to be axed.

The controversial insolvency mechanism has already been used by other UK retailers, including Carpetright, Mothercare and New Look this year.

It is expected the CVA will be launched by professional services firm Alvarez & Marsal early next week.

This afternoon, a spokesperson for Homebase refused to comment on the reports - or whether any Irish outlets might be affected.

Hilco, which rescued HMV five years ago, has been working on the CVA since buying Homebase from Australian group Wesfarmers for £1 in late May.

Wesfarmers originally paid £340m (€377.5m) for the chain in 2016.

Homebase has already closed 18 stores in recent months - with reports today indicating that 30 to 60 more could be under threat.

The exact number of jobs under threat is also unclear - with analysts speculating that it could be between 1,000 and 1,500.