Homebase has secured a war chest to help finance its turnaround plans.

The beleaguered home improvement retailer has secured an asset-based lending facility of up to £95m with Wells Fargo Capital Finance.

“We are really pleased to have secured lending facilities from Wells Fargo as Homebase achieves another milestone in delivering its turnaround plan,” said Homebase chief executive Damian McGloughlin.

“Wells Fargo have provided a bespoke facility that supports the working capital requirements of the business.”

The refinancing is the latest building block in the retailer’s turnaround plan. It was given the green light to shut 42 stores as part of a CVA approved by creditors in August. It said today that EBITDA for the first four months of the current financial year is £35m ahead of last year and it is on track to return to profitability by the end of 2019.

McGloughlin added: “We are working with all our stakeholders to capitalise on the opportunities in the home improvement market in the UK and Ireland.”