Wesfarmers to close Homebase in Cardiff

Wesfarmers have announced that the Homebase store located at Culverhouse Cross, Cardiff will be closing its doors for good on 10th March.

On Monday, the Australian conglomerate which owns Homebase's parent firm Bunnings UK & Ireland, said trading at the chain had been "poor" as it booked a £454 million impairment charge linked to its acquisition of the retailer in February 2016. Wesfarmers managing director Rob Scott said "The Homebase acquisition has been below our expectations which is obviously disappointing. In light of this, a review of Bunnings UK has commenced to identify the actions required to improve shareholder returns."

Read - Wesfarmers admit Homebase disaster and prepares way for UK&I exit.

In the investor teleconference, Scott also confirmed that between 20 and 40 of the worst performing Homebase stores could close. He also admitted that only half of the 19 Bunnings trial stores were delivering a profitable return to the business.

Read - Wesfarmers could close up to 40 Homebase stores.

When asked if any of the Homebase stores in Wales will be affected, a spokesperson for the company said: " It's too early to say and it’s not appropriate to speculate at this point. Our team will always be the first to know of any updates."  Homebase currently operates 250 stores in the UK and Ireland and employs 12,000 staff. 

Wesfarmers have announced a strategic review of the business, which is likely to be complete by the Wesfarmers strategy briefing session, planned for 7th June 2018.

Source: Insight DIY Team

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