NEARLY2,000 Homebase staff could be axed after the DIY chain’s Australian owner launched a review of the business that may see up to 40 stores shut.

Wesfarmers, which owns Homebase’s parent firm Bunnings UK, said yesterday that trading at the chain has been “poor” as it booked a £454 million impairment charge linked to its acquisition of the retailer.

Homebase has stores across Sussex.

Wesfarmers managing director Rob Scott said.: “The Homebase acquisition has been below our expectations which is obviously disappointing.

“In light of this, a review of Bunnings UK has commenced to identify the actions required to improve shareholder returns.”

The group later confirmed that between 20 and 40 of the worst performing Homebase stores could close down in the latest sign of distress on the British high street.

Homebase operates from 250 stores and employs 12,000 in total in the UK.

Poor trading at Homebase is expected to drag Bunnings into an underlying loss of £97 million for the first half of the year, Wesfarmers confirmed.

Mr Scott said: “We need to address underperformance in our portfolio that is detracting from positive performance in other areas, and the announcement sets out decisive actions to achieve this,”

Bunnings acquired Homebase in 2016 in a £340 million deal and has been attempting to reposition the brand.

As well as revamping the stores and slashing prices, Homebase is in the process of being rebranded as Bunnings. But Wesfarmers said it will evaluate the performance of rebranded pilot stores.