Hilco Capital, the DIY retailer’s owner said that the company was “very likely” to enter administration if the CVA is not passed. Some Homebase landlords plan to vote against the deal claiming it penalises them.
Despite landlord complaints, Alvarez and Marsal, the company advising Homebase on its potential CVA say the move will be a “lifeline” for the retailer and a benefit for landlords. Some property owners are plotting legal action after seeing rent reductions of up to 90% as too steep.
If the CVA is approved Hilco will inject £25m of capital into Homebase along with £116m in debt. Homebase was bought by the private equity firm in June for £1 in the hope it can turnaround fortunes at the struggling retailer.