Peterborough's Homebase store has been earmarked for closure putting jobs at risk

Homebase in Peterborough has been earmarked for closure.

The Homebase outlet in Eastern Industry, in Padholme Road East, is one of 42 outlets across the UK that will be shut putting 1,500 jobs at risk.

Details about the number of staff at Homebase in Peterborough have not been released.

The move from owners Hilco comes just months after the turnaround specialist bought the business from its former Australian owner Wesfarmers for Â£1.

The retailer is closing the stores through a Company Voluntary Agreement (CVA), an insolvency procedure used by struggling firms to shut under-performing shops.

Restructuring experts at Alvarez & Marsal will carry out the CVA, which will require the support of landlords.

The firm, which has 241 stores, said the affected outlets would be shut over the next 16 months.

At its peak, Homebase had 250 stores at its peak and 12,000 staff.

Damian McGloughlin, chief executive of Homebase, said: "This 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 latest restructuring would come on top of a store closure programme the retailer has been carrying out since February.

A total of 16 Homebase stores have been shut this year and the business has also axed 303 jobs at its head office in Milton Keynes.

Homebase could see some resistance from landlords to the CVA, with the property industry expressing disdain for the procedure, saying it leaves them out-of-pocket.

CVAs have been adopted by a host of retailers including New Look, Carpetright and Mothercare.

Union leaders urge Homebase bosses to keep Peterborough staff in the loop as its closes the city store