Homebase will reportedly close a quarter of its stores in a company voluntary agreement that could lead to more than 1,000 job cuts.

The embattled DIY retailer will reveal the plans for the store closures as early as next week, Sky News reports.

It is understood that new Homebase owner Hilco Capital will outline proposals for a CVA, which will propose closing around 60 of Homebase’s 249 remaining stores.

The CVA is expected to be launched by professional services firm Alvarez & Marsal at the beginning of next week.

Homebase has already closed 18 stores in recent months and is cutting a third of staff in the Milton Keynes head office as part of the turnaround programme following its disastrous ownership under Bunnings.

Bunnings sold Homebase to restructuring and turnaround specialist Hilco for £1 in May, booking a loss of between £200m and £230m on the botched acquisition.

Homebase was bought by Wesfarmers-owned Bunnings from Home Retail Group in 2016 for £340m but swiftly dispensed with the former management team and failed to adapt its offer to the UK market.

Homebase has declined to comment.