Homebase future under threat as creditors meet

The BBC has reported that Homebase faces a make-or-break vote on its future on Friday.

The chain has proposed closing 42 stores and cutting rents on others as part of a rescue plan.

But some landlords plan to vote against the deal, or Company Voluntary Arrangement, saying it penalises them.

If it is not approved, owner Hilco Capital has said it is "very likely" Homebase will go into administration.

The private equity firm, which bought Homebase for £1 in June, wants to revive the DIY chain under a three-year turnaround plan.

Hilco has also promised to pump £25m of capital and up to £116m of debt into the business - but only if creditors back the CVA.

Alvarez and Marsal, the consultants managing the CVA process, say the rescue plan would be a “lifeline" for Homebase and benefit its landlords.