HomeBase Inc. Names Gallagher President

HomeBase Inc., which recently transformed itself into a home furnishings business called House2Home, said Tuesday it has named Thomas F. Gallagher as president and chief operating officer.

Gallagher, who has been with the Irvine retailer for five years, was previously executive vice president of store operations. He replaces Herbert J. Zarkin, who will remain chairman and chief executive.

The company also said Scott L. Richards, executive vice president of merchandising, has resigned. Henry Ragin, general merchandising manager, will assume Richards’ duties.

HomeBase was a home improvement chain battered by bigger competitors like Home Depot Inc. and Lowe’s Co., so it reinvented itself as a home furnishings store.

The company said this month that second-quarter losses will probably be higher than expected and that after strong grand openings, sales at the House2Home stores have not met expectations. It blamed the sluggish economy.

HomeBase stock closed at $2.10 a share, down 5 cents, on the New York Stock Exchange.