Kbb News - Today has seen numerous reports that UK's Homebase is about to enter administration and that growing retailer The Range is set to swoop in and could take as much as 75% of the ailing business and save 1500 Kbb jobs should the Homebase pre-packaged administration deal proceed.
The acquisition, anticipated to close this week, will see The Range take on 75 Homebase stores, including all Irish locations, saving some 1,500 jobs.
This transaction comes as a last minute lifeline for embattled DIY chain Homebase, amid significant and ongoing challenges in the UK retail sector, particularly for big ticket home improvement projects involving fitted kitchens, bedrooms and bathrooms.
However, whilst Chris Dawson, owner of The Range, is said to be finalising a pre-package deal to acquire the brand’s website and as many as 75 Homebase stores in a deal worth around £30m this deal also leaves questions about the future of 1,700 additional employees at roughly 50 remaining stores that dont form part of Chris Dawson's plans and will therefore be put up for sale to other buyers as part of the Homebase administration process.
News of Homebase entering into administration wont come as much of a shock as in recent months the embattled DIY chain Homebase offloaded 14 of its stores to Sainsbury’s and according to reports in The Telegraph, talks are also underway to sell an additional 10 Homebase retail locations to other retail giants thought to include Wickes and Topps Tiles.
Longstanding Issues at Homebase
Homebase entering into administration represents the latest chapter in the company's long and complex history.
Since its founding in the 1970s, Homebase has been through a succession of owners, including Sainsbury's and Home Retail Group, followed by Australian conglomerate Wesfarmers, which purchased Homebase in 2016.
Wesfarmers struggled to turn the company's fortunes around and incurred substantial financial losses that ultimately led to the acquisition of Homebase by Hilco Capital in 2018 for the pricely sum of £1.
During the Wesfarmers ownership, Homebase immediately saw its senior management team sacked as soon as the deal was concluded and a series of 'self inflicted' blunders made matters worse during Wesfarmers tenure, including dropping popular kitchen and bathroom ranges.
Whilst Hilco’s acquisition saved the brand from complete collapse, Homebase continued to face challenges under Hilco’s ownership and when Covid and then the cost of living crisis hit the Kbb market, Homebase were already in a precarious financial situation with little hope of recovery.
The business recorded some £21m of losses in 2022 and £84.2m last year.
In contrast, The Range owner Chris Dawson opened the first Range store in 1989 and in recent years the business also stepped in to buy failing high street retailer Wilko in August 2023 so there are confident hopes that Dawson can get the deal over the line and save a lot of Homebase employees from redundancy.
The Range has over 200 outlets across the UK, selling everything from homewares to DIY products
Other Homebase News - Homebase Up for Sale Again / Homebase to Sell Bosch and Neff / Homebase Acquires Bathstore / Homebase Rescue Plan Approved / Wesfarmers Acquires homebase for £340m
