Homebase said it is reviewing its central resource requirements “to bring its cost base in line with trading conditions”. Retail Week has learnt that the redundancies are set to run into the hundreds.
All potentially affected staff were notified this week and a group consultation period will start in two weeks, with the process due to conclude by mid-February.
In a statement, the retailer said: “The challenging conditions facing the DIY market and the retail sector in general mean that Homebase needs to further review costs to ensure that the business is managed in the most efficient way, while still offering great service to our customers.”
The DIY and home improvement sector has been one of the hardest hit parts of retail, with the housing crisis leading to fewer people buying new homes.
Last month Homebase parent company Home Retail Group wrote down£542 million against the retailer’s value, pushing the group into a pre-tax loss of£437 million.
In the six months to August 31, like-for-likes at Homebase plummeted 10.3 per cent.
Homebase is not the first DIY retailer to act in preparation for tougher times ahead. Last month Focus announced it would trim its workforce by 15 per cent, making 750 people redundant (Retail Week, October 10).
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