Homebase is on the brink of administration, with The Range potentially acquiring several of its stores, impacting numerous jobs.
- The DIY retailer plans to appoint Teneo for an insolvency process involving around 130 UK stores.
- The Range is expected to purchase up to 75 Homebase stores, including those in Ireland.
- This acquisition could preserve approximately 1,500 jobs, but 1,700 positions remain uncertain.
- Homebase’s financial woes stem from an £84m loss in the last fiscal year, down from a previous £30m profit.
Homebase is preparing to enter administration, as reported by The Times. The company is expected to appoint Teneo to oversee the process, which involves approximately 130 stores throughout the UK. This move raises concerns about the future of many employees and the company’s survival.
The Range appears poised to acquire up to 75 Homebase stores, including the company’s outlets in Ireland, in a deal predicted to occur imminently. This acquisition is crucial for retaining a significant number of roles within the company, aiming to save close to 1,500 jobs. However, it leaves the fate of roughly 1,700 jobs hanging in the balance, raising considerable uncertainty for many employees.
Homebase has been facing financial difficulties for some time, exacerbated by a significant loss last year. The company’s financial reports indicate an £84 million loss for the year ending January 2023, a stark fall from a £30 million profit the previous year. This financial decline has prompted a search for new investment and strategic partnerships to stabilise the brand’s operations.
Earlier this year, Hilco Capital, which acquired Homebase in 2018 for a nominal £1, engaged Teneo to explore various cost-cutting measures following the concerning financial performance. A decline in sales, from £788 million to £701 million, additionally compounded the financial pressures on the company.
As part of its restructuring strategy, Homebase initiated an ‘active sale process’ to attract new investors willing to drive the next phase of growth for the home and garden retailer. In a related transaction, ten Homebase stores were acquired by a major supermarket chain in a £130 million deal to mitigate some of the company’s challenges.
The future of Homebase hangs in the balance as it seeks to restructure and stabilise amid acquisition talks.
