Homebase Stores set to close

Latest business news from the Suffolk Free Press, suffolkfreepress.co.uk, @sfpsudbury on Twitter
Latest business news from the Suffolk Free Press, suffolkfreepress.co.uk, @sfpsudbury on Twitter

DIY store Homebase in Sudbury could be under threat after Home Retail Group announced its plan to cut the number of stores by 25 per cent.

The group, which owns both Homebase and Argos, announced its intention to cut around 80 of its 323 stores by 2019 after a review indicated that the chain’s sales were falling.

Home Retail Group reported its half-year profit before tax at £13.5 million, a five per cent decrease on 2013.

Chief executive John Walden said: “Homebase will pursue a three-year plan through to the end of 2018 to improve the productivity of its store estate.

“This will position Homebase as a smaller but stronger business, ready for investment and growth.”

Home Retail Group has not yet announced which stores will close or the predicted number of job losses.

Thirteen stores have already closed in the last year.

A Home Retail Group spokeswoman said the company will aim to redeploy employees within the group or to other retailers once the closing stores are identified.