In a significant move, Kingfisher and M&S are set to bid for Homebase stores as the DIY retailer faces financial hardship.
- Sky News indicates the deadline for these bids is today, with offers expected for 20 to 25 outlets, potentially preserving numerous jobs.
- The exact number of stores each company is interested in remains speculative, but reports suggest both are keen on acquisition.
- Discount retailer Home Bargains has shown interest in acquiring a few of the remaining stores.
- CDS (Superstores) International recently acquired the Homebase brand and a substantial number of stores, leaving several sites and jobs in jeopardy.
Kingfisher and Marks & Spencer are making strategic bids to acquire the remaining Homebase stores. The potential acquisition comes as part of a response to Homebase’s recent financial struggles, having entered administration a month ago. Sky News has reported that the deadline for formal bids is today, and both retail giants are expected to place offers for between 20 and 25 stores.
If successful, this move could safeguard hundreds of jobs currently at risk. However, there is some ambiguity about whether this number represents a combined total or the individual intentions of each company. This uncertainty reflects the competitive nature of the bidding process.
In addition to Kingfisher and M&S, the discount retailer Home Bargains has also emerged as a contender, albeit for a smaller selection of locations. This interest highlights the continuing value and appeal of Homebase’s market presence, even amid its financial distress.
Earlier this month, CDS (Superstores) International, known for its ownership of The Range and Wilko, had acquired the Homebase brand along with intellectual property and up to 70 stores. This acquisition left approximately 50 stores and 2,000 jobs in precarious positions.
This chain of events followed a challenging fiscal period for Homebase, during which significant losses were reported. Hilco Capital, which had previously acquired Homebase for a nominal sum, engaged Teneo to explore cost-saving measures. Despite this, the retailer reported a significant financial shortfall of £84 million by January 2023, a sharp decline from a previous profit.
The strategic interest from Kingfisher and M&S could offer a lifeline to Homebase amidst its ongoing financial challenges.
