COLCHESTER’S one remaining Homebase looks set to avoid the axe after administrators announced 42 nationwide store closures.

In April, staff at the superstore in St Andrew’s Avenue, announced the premises had been sold to Lidl, which is already putting plans together to open a supermarket on the site.

However, fears had also been raised for the future of the Tollgate store when owners Wesfarmers sold the brand to Hilco, a retail turnaround specialist, for £1 in May.

Homebase was initially bought by Wesfarmers for £340 million in 2016, but an attempt to bring the Bunnings brand from Australia to the UK failed.

Troubleshooters Alvarez & Marsal were appointed to carry out a restructuring exercise, which has resulted in the agreement’s planned closures.

The Tollgate store has escaped the cull. A company voluntary agreement set out yesterday outlined the store closures but the Tollgate store appears to have escaped the cull.

Damian McGloughlin, chief executive of Homebase, said it had been a difficult decision but is one which had to be made.

He added: “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.”

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

“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.”

Dave Gill of Usdaw, a union representing Homebase staff, said he was seeking urgent clarification from Hilco about its plans.

He added: “All too often, staff are excluded from the CVA process as the future of their jobs are being decided.

“It is crucial the company listens to the staff and invests in their experience and expertise to turn the business around and again make it a success.”