Homebase employee

Homebase is set to announce the closure of up to 80 stores next week, with the likely loss of about 1,000 jobs.

The loss-making DIY chain, which was bought by restructuring experts Hilco in a deal agreed in May, is set to file a company voluntary arrangement, a form of insolvency that enables a retailer to exit or alter deals with landlords.

The process is expected to be handled by Alvarez & Marsal, a specialist adviser on corporate insolvencies which advised Toys R Us on a CVA before the toy retailer collapsed earlier this year.

The company has already shut 17 unprofitable stores and…