Amazon is eyeing empty Homebase stores as it looks to expand its UK delivery network, according to reports.
The Sunday Telegraph is reporting that Amazon is in talks with Hilco (Homebase owner) to offload real-estate under a company voluntary agreement (CVA).
Homebase was recently acquired by Wesfarmers, which seems to have been a very, very poor business decision. Now, many of its stores are left empty, and Amazon could be the happy buyer.
Homebase is looking to close more than 40 stores, as it looks to restructure, cut costs and try to close rescue deals with landlords and creditors. More than 1,500 jobs could be lost, if these stores are closed.
Amazon, on the other hand, could be a new path Homebase can take. The global retail giant is looking to grow and expand its delivery network for one-hour drop-offs in London. The media are saying Amazon has been buying property around the country, already.
At the moment, it is keeping most of its stock in warehouses on the outskirts of London, but if it wants to reduce delivery times in built-up areas, it will need places closer to home.
It’s not yet clear how many stores Amazon is looking to buy. Some media are claiming it is not expecting any ‘serious’ competition for these locations, with today’s retail environment.
You can find the full list of Homebase stores scheduled for closure here (opens in new tab).
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