Homebase plans to close 60 stores threatening more than 1,000 jobs, say reports

DIY chain's owner attempts to turn round business after disastrous two years

Australian firm Wesfarmers sold the loss-making DIY chain to Hilco for £1 in May, just two years after purchasing it for £350m (Rex)

Homebase is set to announce plans to close 60 stores next week, threatening up to 2,000 jobs.

Hilco Capital, the restructuring specialist that bought the struggling retailer for £1, declined to comment.

Homebase announced in June that it would cut 300 jobs at its Milton Keynes head office and rumours have been circulating that store closures are imminent.

Australian company Wesfarmers sold the loss-making DIY chain to Hilco in May, just two years after purchasing it for £350m.

HMV owner Hilco has set in motion plans to turnaround Homebase, which has 250 stores and a workforce of just over 11,000 people.

Wesfarmers had hoped to convert Homebase to its Bunnings brand, but a pilot that saw 24 stores switch names was "swiftly" ended once Hilco took over.

Earlier this year, Wesfarmers said it was considering closing up to 40 UK stores, with heavy losses expected.

Wesfarmers managing director Rob Scott said at the time that disposing of the UK chain was in the best interests of shareholders, following a review of the business.

“While the review confirmed the business is capable of returning to profitability over time, further capital investment is necessary to support the turnaround," he said.

Homebase has also been struggling against the multiple problems facing the retail sector.

Rising costs thanks to increased business rates and the national minimum wage have come at the same time consumers tighten their belts as confidence in the economy remains low.