Homebase is planning to close 10 stores with a major supermarket chain in the wings to buy and take them over for £130m.
Sainsbury’s has agreed to acquire all the affected shops and convert them into supermarkets in a deal which is anticipated to create around 1,000 new jobs.
But a number of Homebase employees are now at risk of redundancy, although Sainsbury’s has said it will offer interviews to any staff affected by the closures.
Each location has from 15,000 to 40,000 square feet of trading space and Sainsbury’s hopes to have some of its new stores ready by next summer, and the rest by the end of next year.
The locations set for conversion are located in Sutton Coldfield, Bromsgrove, Cromer, Derry/Londonderry, Fareham, Inverurie, Lowestoft, Newark, Omagh and Rugby.
Homebase is planning to close 10 stores with a major supermarket chain in the wings to buy and take them over for £130m (stock image)
A map showing the 10 locations set for conversion into Sainsbury’s
Sainsbury’s (stock image) has agreed to acquire all the affected shops and convert them into supermarkets in a deal which is anticipated to create around 1,000 new jobs
Sainsbury’s, which is Britain’s second-largest supermarket chain, said it will also allow nearly 400,000 more people will be within a 10-minute drive of a Sainsbury’s supermarket.
The handover of the sites is scheduled for early next month, with the significant expansion of the supermarket to increase its total shop floor area by 235,000 square feet of trading space.
Simon Roberts, chief executive officer, of Sainsbury’s said: ‘Sainsbury’s food business continues to go from strength to strength as we push ahead with our Next Level Sainsbury’s plan.
‘We have the best combination of value and quality in the market and that’s winning us customers from all our key competitors and driving consistent growth in volume market share.
‘We want to build on this momentum which is why we are growing our supermarket footprint.
‘Our ambition is to be customers’ first choice for food and these new stores will showcase some of the best that Sainsbury’s supermarkets have to offer to even more communities around the country.’
This move follows reports that Homebase’s owner, Hilco Capital, is preparing to sell the company after being approached by The Range.
Hilco Capital purchased Homebase from Wesfarmers in 2018 for £1. It has closed Homebase has closed 106 stores since it was taken over by the company.
Homebase currently operates around 144 locations across the UK, with its first store opening in Croydon in April 1981.
Homebase has been contacted by MailOnline for comment.