Homebase heading for 'partial collapse' with thousands of jobs at risk

Alex Daniel PA Business Reporter & Phil Norris
·2-min read
A general view of a Homebase store in Surrey
-Credit: (Image: PA Archive/PA Images)


Homebase, the home improvement and garden retailer, is reportedly on the brink of a partial collapse, potentially putting thousands of jobs in jeopardy. Reports suggest that the company has enlisted insolvency experts, with a potential buyer showing interest in parts of its 130-store estate.

The DIY retailer is said to be preparing for administration with the help of Teneo consultancy. Retail tycoon Chris Dawson, owner of The Range homeware stores, is reportedly planning a last-ditch rescue deal which could result in him purchasing up to 70 Homebase stores.

If this buyout proceeds, it could save approximately 1,500 jobs, however, at least 1,700 others would remain uncertain, according to Sky News. Investment firm Hilco Capital purchased Homebase for £1 and implemented numerous cost-cutting measures.

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Despite these efforts, the retail chain has struggled amidst reduced customer spending due to the cost-of-living crisis, reporting an £84.2 million loss last year. In August, Sainsbury’s agreed to purchase 10 Homebase stores and convert them into supermarkets.

Homebase, which has shops in Gloucester's Eastbrook Road and Cheltenham's Tewkesbury Road, declined to comment, while Teneo and The Range have been approached for comment. This follows a two-month search for a buyer by Homebase’s current owners.

Mr Dawson is also reportedly negotiating to purchase Homebase’s 40 year old brand and its website, in a deal estimated to cost around £30 million.

The entrepreneur behind CDS Superstores, the parent company of The Range, has acquired sections of high street retailer Wilko following its collapse last year. Speaking to the Telegraph newspaper, he expressed his enthusiasm: "We are delighted to be able to save so many stores and jobs, and look forward to adding the Homebase brand and subsidiaries to the expanding Range group of companies."

The Range is known for selling homeware and DIY products across its extensive network of over 200 stores in the UK.

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