HomeBase Inc., unsuccessful in making inroads against rivals Home Depot Inc. and Lowe's Cos., announced it would exit the home improvement business, close 22 stores and convert the rest to home furnishing stores. Irvine-based HomeBase plans to operate its remaining 67 stores under the House2Home name, said Herbert Zarkin, HomeBase's chairman, president and chief executive officer.
"HomeBase made a valiant effort to sustain its position in the fiercely competitive home improvement market," Zarkin said, adding "we do not foresee the pressures on the HomeBase business subsiding in the near term." The announcement was made Tuesday.
Home Depot is the country's largest home improvement chain and has recently expanded in California. Lowe's, the second-largest chain, also has a presence in California.
HomeBase, which has operations in nine western states, said it will take a charge of about $55 million to liquidate inventory. It also expects to post a net loss of about $80 million in the fiscal year ending January 2002.
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Keep the discussion civilized. Absolutely NO personal attacks or insults directed toward writers, nor others who make comments.
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