HOMEBASE intends to close its branch at Poole's Tower Park under a plan to axe 42 under-performing stores.

The DIY chain became the latest retailer to suggest a company voluntary arrangement (CVA) to shut under-performing branches.

The closures will mean up to 1,500 job losses across the country.

A statement said Homebase’s performance and profitability had “declined significantly” over the past two years.

“In addition, the company has faced an extremely challenging retail trading environment reflecting weak consumer confidence and reduced consumer spending. These factors have had a significant adverse impact on Homebase’s trading position,” the statement added.

It said rents at many of its branches were unsustainable and many stores were loss-making.

The store closures will take place during late 2018 and early 2019. The company said every effort would be made to redeploy staff.

The CVA would need approval from creditors in a vote on August 31.

Damian McGloughlin, chief executive of Homebase, said: “Launching a CVA has been a difficult decision and one that we have not taken lightly.  “Homebase has been one of the most recognisable retail brands for almost 40 years, but the reality is we need to continue to take decisive action to address the underperformance of the business and deal with the burden of our cost base, as well as to protect thousands of jobs. 

“The CVA is therefore an essential measure for the business to take and will enable us to refocus our operations and rebuild our offer for the years ahead.”

Homebase has already closed 16 stores this year and axed 303 jobs at its head office in Milton Keynes.

Current owner Hilco bought the business for £1 earlier this year from Westfarmers, which paid £340million for it in 2016.

A host of famous retailers – including New Look, Carpetright, Mothercare and House of Fraser – have sought CVAs in recent times.

In some cases, such as BHS and Toys R Us, the measure was not enough to stave off administration.

An increasing number of landlords have voiced dissatisfaction about the arrangements, arguing that it leaves them out of pocket while restoring value for shareholders. 

Stephanie Pollitt, assistant director of real estate policy for the British Property Federation said of the Homebase proposals: “These situations are never easy as property owners need to take into consideration the impact on their investors, including those protecting their investors’ pensioners’ savings, as they vote on the CVA proposal.”

But she said Homebase and restructuring specialist Alvarez & Marsal had “demonstrated best practice” in  its handling of the proposal.

“Ultimately, it will be for individual property owners to decide how they will vote on the CVA, but the proposal has sought to find a solution that provides a sustainable future for Homebase,” she added.