09 November 2008
There were fears for hundreds of jobs at Homebase today after it emerged that cost-cutting at the struggling DIY chain will include widespread redundancies.
The chain, part of the quoted Home Retail Group, admitted it must 'bring its cost base in line with trading conditions'.
It added: 'The challenging conditions facing the DIY market and the retail sector in general mean that Homebase needs to further review costs.'
Challenging: In today's trading climate Homebase must bring down its cost base
Retail Week magazine says it has been told that will mean redundancies running into the hundreds.
Homebase has been hit particularly hard because of a downturn in the home improvement market.
Its most recent like-for-like sales figures showed a slump in trading of more than 10 per cent.
In its recent results, Home Retail took writedowns of ?542million, pushing the group deeply into the red with a loss of ?437million.
Rival group Focus said last week that it was cutting 15 per cent of its workforce, laying off 750.