(qlmbusinessnews.com Thurs. 14th Nov, 2024) London, UK —
2,000 Jobs at Risk as Homebase Enters Administration – Future Uncertain
Homebase has filed for administration, casting uncertainty over 2,000 jobs across the UK. The retailer’s owner, Hilco, had been searching for a buyer but was unable to secure one for the entire business. In a partial rescue, CDS Superstores, which owns The Range, has stepped in to acquire up to 70 Homebase stores along with the brand, securing around 1,600 roles.
The future remains uncertain for the remaining 49 locations, as Teneo, the appointed administrators, continue to search for potential buyers. These stores will continue operating for the time being, with no immediate redundancies announced. The acquisition by CDS Superstores will see The Range assume control of Homebase’s brand and intellectual property, with plans to operate the brand online and rebrand the acquired stores as The Range outlets.
Homebase CEO Damian McGloughlin described the recent period as “incredibly challenging” for the DIY sector. He noted that weak consumer confidence, inflation, global supply chain disruptions, and unseasonable weather patterns have all taken a toll. Despite restructuring efforts and investment searches, Homebase was unable to stabilise. McGloughlin acknowledged the news would be “unsettling” for employees.
In a statement, Teneo joint administrator Gavin Maher encouraged any interested parties to come forward to purchase the remaining stores. Homebase recently finalised the sale of 11 locations to Sainsbury’s, which is in the process of acquiring an additional three.
Hilco acquired Homebase from Wesfarmers in 2018 for a symbolic £1 after Wesfarmers’ own ill-fated acquisition of the business in 2016. Wesfarmers faced heavy criticism for its operational missteps, including changes to inventory that failed to meet UK demand. Hilco’s turnaround efforts, while extensive, faced significant headwinds as the cost-of-living crisis grew and consumer spending on home improvement waned, culminating in an £84.2m loss for Homebase last year.
Market analysts suggest that Homebase struggled to regain its position amid fierce competition. Susannah Streeter of Hargreaves Lansdown pointed to high borrowing costs and cautious consumer spending, with a notable shift in spending patterns toward affordable stores like B&M and Home Bargains. Homebase, originally founded in 1979 by Sainsbury’s and GB-inno-BM, once flourished in the UK market. However, its fortunes waned as ownership changed hands over the years and competition surged.
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