Whitchurch's Homebase store to close on July 4

It comes as Homebase was today sold by its Australian owner Wesfarmers to retail restructuring firm Hilco, closing the chapter on a disastrous foray into British retail.

The deal, for a nominal sum thought to be £1, will see Wesfarmers book a loss of up to £230 million and see the firm exit the UK after picking up the DIY chain for £340 million in 2016.

It is unclear at this stage if Hilco, which bills itself as a retail restructuring specialist and also owns HMV, will embark on a store closure programme.

Wesfarmers paid £340 million for the DIY chain in early 2016 and has been rebranding the stores under the Bunnings name.

Homebase has other stores across the region, including in Telford, Market Drayton, Wrexham, Cannock, Kidderminster and Wolverhampton. The future of these is not yet known.

A Homebase Spokesperson said: "We can confirm that our store in Whitchurch is due to close on July 4. Our priority now is to continue supporting team members."

Homebase has about 250 stores across the UK and employs 12,000 people.

Under the terms of the deal, Hilco will acquire all Homebase assets including the brand, its store network, freehold property, property leases and stock.

A total of 24 stores that were trading as Bunnings, Wesfarmers’ brand, will convert back to the Homebase fascia.

Under the terms of the deal, Hilco will acquire all Homebase assets including the brand, its store network, freehold property, property leases and stock.

A total of 24 stores that were trading as Bunnings, Wesfarmers’ brand, will convert back to the Homebase fascia.

Retail experts have criticised Wesfarmers for failing to judge the UK market correctly after buying Homebase from Home Retail Group two years ago.

Richard Lim, of Retail Economics, said: “The acquisition of Homebase has been an unbelievable disaster for Wesfarmers.

“Their attempts to disrupt the UK DIY market have failed after a series of woeful management decisions, clumsy execution and a misguided perception of the UK market.

“There’s no doubt that the timing has been ill-fated as the sector faces incredibly tough headwinds.

"Against this backdrop, the business is bleeding cash and the owners have decided enough is enough. Unfortunately, the restructuring will almost inevitably lead to store closures and more job losses on the high street.”

Homebase boss Damian McGloughlin said the agreement with Hilco “marks an exciting new chapter” for the retailer.