A question mark hangs over the future of Kirkcaldy’s Homebase store, after a court ruled it could not transfer its lease to another company.
The DIY chain which employs 30 workers at its Fife Central Retail Park outlet announced in July 2014 it would be shutting up shop but never disclosed an exact closure date.
In January employees said they were “still in the dark” about when they would lose their jobs. At the time Homebase confirmed the store was still earmarked for closure and a date would be announced “following the completion of talks with the landlord”.
It later emerged that a row had broken out behind the scenes between Homebase and the landlord, Hammersons (Kirkcaldy) Ltd over the issue of the company’s lease.
In 1997 Homebase signed an agreement that it would maintain the lease for 25 years. With more than seven years still remaining on the document, Homebase needed the landlord’s approval to transfer the lease over to CDS (Superstores International) Limited, otherwise known as The Range, a company that sells mid-price home, leisure, and garden products.
Hammersons, however, opposed the plans on the basis that it had not received adequate information on the proposed takeover.
As a result, a Court of Session tribunal followed and Lord Tyre ruled in favour of Hammersons, stating it was “reasonable” for the landlord to require the supply of information relating to issues such as rental costs before making a decision.
He added: “It further follows that the landlord is not acting unreasonably in withholding consent either to the assignation or to the change of use on the ground that the tenant is refusing to supply the information.”
As a result of Lord Tyre’s decision, the future of the store and the length of time its employees will keep their jobs remains unknown.
A source close to the company said staff felt “extremely disappointed” in how the matter had been handled and felt they “should have been better informed”.
A spokeswoman for Homebase told The Courier yesterday: “We can confirm we have received the most recent judgement in the court case involving the future of our Homebase Kirkcaldy store.
“At this time our first priority is to support our store colleagues and continue to serve customers within the community. We are consulting with our advisers concerning next steps.”
The Courier contacted The Range to ask whether it was still keen to move into the Homebase unit if it became vacant in the near future but the company declined to issue a statement.
Hammersons also declined to comment.