Home improvement retailer Homebase is teetering on the brink of administration, putting thousands of jobs and 130 stores in jeopardy.
The Range is reportedly close to finalising a deal to acquire a significant portion of Homebase, potentially safeguarding around 1,500 jobs. The agreement is expected to include the purchase of up to 75 stores, including Homebase’s outlets in Ireland.
The embattled chain is preparing to appoint administrators from Teneo to oversee its insolvency, following a reported loss of £84.2 million last year.
Hilco Capital, which acquired Homebase for £1 in 2018, has been exploring cost-cutting measures this year, citing cautious consumer spending as a key factor in declining sales of DIY products.
In August, Sainsbury’s announced plans to purchase 10 Homebase stores and convert them into supermarkets. The grocery giant co-founded Homebase in the 1970s before divesting its stake in the early 2000s. The stores earmarked for conversion are in Sutton Coldfield, Bromsgrove, Cromer, Derry/Londonderry, Fareham, Inverurie, Lowestoft, Newark, Omagh, and Rugby.
Homebase Managing Director Damian McGloughlin informed suppliers in August that the company would initiate an ‘active sale process’ to attract new investment.
The retailer is believed to be in discussions with The Range and discount chain B&M regarding a potential ‘pre-pack’ administration deal, which could secure the future of some stores and jobs.
Homebase currently operates approximately 144 stores across the UK, with its first branch opening in Croydon in April 1981.
