Spalding town centre is likely to lose another major name as Homebase looks set to close.
Staff at the Westlode Street store are already in consultation regarding their futures as another high street giant hits a financial crisis.
The brand has been in trouble for some time and Australian owners Wesfarmers have been reported to be looking for a buyer.
High streets around the country have been struggling with trading conditions as shopping habits change.
But Spalding town centre still has cause to be optimistic for the future and is in a better position than most.
David Norton (pictured), vice chairman of the Spalding and District Chamber of Commerce said times were challenging for retailers, but Spalding was ready to adapt and was already in a good place.
“It has been doing really well and the empty shop numbers have been at the lower end.
“Town centres need to re-establish themselves as destination venues.”
By the autumn, the town centre should have 100 per cent occupancy, aside from any potential closure of Homebase.
“There are two empty units at the moment and they will both be in use by the end of summer. We have a lot of independents including two department stores, which is unusual.
“The Homebase market is extremely competitive and very difficult. South Holland District Council and the Department for Work and Pensions will do everything we can to help those affected by the news,” said Ian Burch, economic development and inward investment manager at South Holland District Council.
A spokesman for Homebase said: “We can confirm that we have entered into a consultation period regarding the proposed closure of our store in Spalding. Our priority now is to continue supporting team members.”
There are reports this week that Opcapita, the firm which presided over Comet when it collapsed, has tabled an offer for Homebase.
It is believed that Wesfarmers has been offering a financial package of £100m to the new owner to help cope with huge losses.
At the end of last year Homebase had 12,000 employees although a number of stores are likely to close.
It was reported last month that Homebase sales plummeted 20 per cent after the so-called ‘beast from the east’ froze sales.
Wesfarmers said the cold snap had severely hit garden centres. It had planned to convert the chain to the Bunnings brand which has been successful in Australia.
So far only a few Homebase stores have been converted to the new name.
The Spalding branch’s Neighbour Carpetright has also been in financial difficulty and has secured a £15m emergency loan last Friday.
The money was provided by the company’s biggest shareholder.
The retailer is due to raise further capital today (Thursday) but more than 80 of its stores are likely to close with hundreds of jobs at risk.
