Is it the Beginning of the End for Homebase

Retailers Homebase have just become the latest major store chain to face the threat of extinction only to be saved from administration by a company voluntary arrangement (CVA) which has for now been agreed with creditors.  

Given the fate of many large household retail chains in the past decade it would be easy to assume that this is merely the beginning of the end for Homebase.  

The CVA will include a commitment to close 42 stores by the end of 2018 resulting in the loss of a reported 1,500 jobs.  

This is seen as necessary to give the Homebase a chance to turn around its fortunes with plans to return to its roots following a disastrous attempt to move its focus more into DIY than the softer side of home furnishing.  

Hilco Capital who have a strong track record in saving businesses such as HMV will have the task of doing the same for Homebase, however there will be considerable hurdles to negotiate before that happens.  

Declining demand for the tools of the DIY trade as well as competition from rivals in this area is unlikely to help and going back to its roots might also be difficult if people start to become confused about what the brand stands for.