HomeBase Plans to Close Three Stores

HomeBase Inc. said it will close three stores and take a fiscal third-quarter charge of about $16.5 million as it accelerates its store-remodeling program to increase profitability. The operator of warehouse home improvement stores also said it plans to raise $100 million in a debt offering to help fund new-store openings for three years. That’s expected to help strengthen HomeBase’s position in the Western U.S., the company said. In the past, sales at remodeled stores rose 10% in the first year, the company said. HomeBase said it expects profit from operations for the period ending Oct. 25 to rise slightly to about $6 million from pro forma net income of $5.9 million a year ago. Shares of the Irvine-based HomeBase rose 19 cents to close at $10.06 on the NYSE.