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HSS to close 134 depots

8 October 2020

HSS to close 134 depots

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.

 

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