THE Homebase store at Riverside Retail Park is among 42 due to close as the retailer aims to stay in business.

The Warrington shop, which became an outlet last year, is set to close during late 2018 and early 2019 it was confirmed today, Tuesday.

The company is to launch a Company Voluntary Arrangement (CVA) and is seeking approval from creditors on a proposed plan to reduce its cost base in the UK and the Republic of Ireland.

Homebase’s sales performance and profitability declined significantly under the previous ownership over the past two years.

The company has says it has faced an extremely challenging retail trading environment reflecting weak consumer confidence and reduced consumer spending.

The high rental costs associated with the stores are making some loss making according to a spokesman.

Those working in Warrington face redundancy with the loss of 1,500 roles across the country.

Homebase says every effort will be made to redeploy team members within the business.

All stores will remain open for business as usual and this process will have no impact on customer purchases, outstanding orders or any product or service guarantees.

Damian McGloughlin, CEO of Homebase, said: “Launching a CVA has been a difficult decision and one that we have not taken lightly.

"Homebase has been one of the most recognisable retail brands for almost 40 years, but the reality is we need to continue to take decisive action to address the underperformance of the business and deal with the burden of our cost base, as well as to protect thousands of jobs.

"The CVA is therefore an essential measure for the business to take and will enable us to refocus our operations and rebuild our offer for the years ahead.”

Stephanie Pollitt, Assistant Director of Real Estate Policy, British Property Federation (BPF), said: “These situations are never easy as property owners need to take into consideration the impact on their investors, including those protecting their investors’ pensioners’ savings, as they vote on the CVA proposal.

"Homebase and Alvarez & Marsal have, however, demonstrated best practice, engaging with the BPF in the process and therefore ensuring property owners’ interests have been properly taken into account.

"Ultimately, it will be for individual property owners to decide how they will vote on the CVA, but the proposal has sought to find a solution that provides a sustainable future for Homebase.”