DIY retailer Homebase sold at a huge loss for just £1

DIY retailer Homebase sold at a huge loss for just £1

The struggling British retail hardware chain Homebase has been sold by its Australian owner for a nominal fee of £1.

Wesfarmers expects to make a loss of up to £230m ($307m) after buying the DIY retail chain two years ago.

The business is being bought by the restructuring specialist, Hilco, which rescued music chain HMV in 2013.

It is not clear if the new owners will shut down stores, but thousands of jobs are at risk.

Homebase currently employs 11,500 people across the UK.

In February, Wesfarmers warned that 40 Homebase stores could be closed as it expected profits to fall by 86.6%.

Five loss-making Homebase branches were closed between July and December 2017.

The deal with Hilco is expected to be completed by the end of June.

Source: BBC News

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