Hilco Capital LP, which agreed to purchase home improvement chain Homebase from Australia's Wesfarmers Ltd. in May, is planning to close about 60 of the stores, Sky News reported Aug. 8, citing sources.

The move would reportedly put more than 1,000 jobs at risk, and impact about a quarter of Homebase's 249 locations.

Sources also told Sky News that private equity firm Hilco is expected to disclose plans to launch a company voluntary arrangement for Homebase through restructuring adviser Alvarez & Marsal in the coming days.

This comes several weeks after it was reported that Homebase could potentially close up to 80 stores and cut 300 jobs at its England headquarters under Hilco's ownership.

The Sky News report said 18 Homebase stores have already been shuttered in recent months, which could possibly be included in the total number of planned closures.

Wesfarmers had converted some Homebase outlets to its own Bunnings DIY retail format before deciding to sell off the struggling U.K. and Ireland business. Those stores were set to be reverted back to the Homebase brand.