The Irvine-based company closed 31 of its stores, mostly inSouthern California, on Tuesday. The remainder will be shut down inphases, with those selected to be slowly converted tohome-furnishings retail stores.

Though the battle for market-share in the home-improvementretail business is fierce, it's particularly heated in California.HomeBase has been fighting a losing battle against Home Depot, thenation's No. 1 home-improvement chain, and Lowe's, which is No. 2.Home Depot started an aggressive expansion campaign on the WestCoast about two years ago, and Lowe's broke into the massiveSouthern California market in 1999.

HomeBase employs about 10,000 people. Though some layoffs are acertainty, the company says at least some of the workers will beoffered jobs at the stores that will be converted into the chain'snew House2Home furniture and accessory stores.