Sunday 19 August 2018 3:25 pm

Amazon eyes Homebase stores marked for closure


Jess Clark is a City A.M. news reporter covering private equity and investment.

Jess Clark is a City A.M. news reporter covering private equity and investment.

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Amazon is set to bid for a selection of Homebase stores in a move to improve its last mile delivery process.

The online retailer could turn the stores into delivery warehouses when Homebase closes 42 of its 241 sites through a company voluntary arrangement this year. 

Amazon could use the sites, which are conveniently located in urban areas, to expand its one hour delivery service, the Telegraph reported.

Read more: AmazonFresh in Waitrose territory with expansion in the Home Counties

The internet retail giant launched the service in London three years ago before expanding the offer to other areas.

A slow down in the development of new warehouses in the last few years has led to a shortage of supply, the paper said. 

Three London Homebase stores, in Merton, New Southgate and Wimbledon, are set to close under the plans in a move that will cost an estimated 1,500 jobs across the UK.

The beleaguered home improvement chain will seek the backing of landlords and creditors in a vote later this month.

Read more: Amazon's sales jumped in the last quarter, but it missed analyst targets


The restructuring plans, led by turnaround managers Alvarez and Marsal, could see the stores close at the end of this year and the beginning of 2019.

 

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