By Elisa Menendez

A DIY chain could face store closures.

Up to 40 Homebase stores could be facing closure after the DIY chain revealed major financial losses today.

Nearly 2,000 members of staff could be axed after the chain’s Australian owner, Wesfarmers, launched a review of the business that may see 20 to 40 of the worst performing shops close.

It is unclear yet whether the Clitheroe store, based on Queensway, will be affected.

A Homebase spokesman said: “It’s too early to say and it’s not appropriate to speculate at this point, our team will always be the first to know of any updates.

Wesfarmers, which owns Homebase’s parent firm, Bunnings UK, confirmed today that poor trading at Homebase is estimated to drag Bunnings into a loss of £97m for the first half of 2018.

The Australian group announced sales at the chain has been ‘poor’, as it booked a £454m impairment charge linked to its acquisition of the retailer.

Managing Director of Wesfarmers, 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.”

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