HSS to close 134 depots
8 October 2020
HSS is to close 134 of its depots, more than half its total of 240. It estimates that 300 jobs will be lost.
The business has announced a pre-tax loss of £12.9m in its results for the 26-week period to 26 June 2020, announced today. Net debt at 27 June was £236.8m.
Steve Ashmore, Chief Executive Officer, said the company will focus on becoming “a more agile, technologically-driven business.” During the lockdown, HSS invested in digital technology and a click-and-collect scheme, and states that around 30% of new customer contracts are now raised online.
Mr Ashmore added that revenue has returned “to above 90% of 2019 levels with profitability back to pre-Covid 19 levels.
“Our branch network was closed on 23 March and the majority of this network remains closed today. The closures are not having a significant impact on our levels of trading, with customers placing orders through our digital channels, over the phone and on email.”
60% of employees were furloughed in April, and two-thirds of them are now back at work.
HSS is also partnering with regional builders merchants to provide national coverage at lower cost.