Hopes Raised for Future of Homebase Store

Syon Lane branch may be getting a temporary reprieve

Homebase on Syon Lane. Picture: Google Streetview

The Homebase store on Syon Lane may not be closing quite as soon as expected.

Staff at Syon Lane Homebase have been told they have another year and closing down signs have been removed from the premises near the junction with the Great West Road.

A sale is continuing at the store but staff are telling customers new deliveries will resume after an agreement was reached with the landlord.

Property owners had a month to challenge the proposed CVA plan to close 42 stores and cut rent at others.

The original planned closure was part of a proposed Company Voluntary Arrangement (CVA) which is designed to save the group from administration.

The restructuring specialist bought Homebase earlier this year and had already shut 18 branches as part of their attempt to return the group to profitability. The group was reported to be losing £15-20million a month back in May when the purchase was made.

Alvarez & Marsal are advising them and 1,500 jobs could be lost as a result of the closures along with over 300 already cut from its headquarters in Milton Keynes.

Homebase in a statement, “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.”

We have asked for confirmation from Homebase on Syon Lane's future.

October 19, 2018