HomeBase Won’t Be Merging

Waban Inc. said talks to combine its HomeBase home improvement centers division, headquartered in Irvine, with Kmart Corp.’s Builders Square chain ended after the parties failed to reach an agreement.

In February, Waban and Kmart said they were in talks with buyout firm Leonard Green & Partners to combine their struggling home-improvement chains.

Waban said it now plans to spin off its BJ’s Wholesale Club division. It expects to file a registration statement with the Securities Exchange Commission within two weeks.