Homebase is preparing to appoint administrators, with a potential deal on the horizon involving the acquisition of select stores by The Range. The unfolding situation could see jobs saved, but uncertainty looms over many others.
- Homebase plans to appoint Teneo for its insolvency proceedings, with hopes of executing a pre-pack sale.
- The Range is set to acquire up to 75 Homebase locations, including those in Ireland.
- The acquisition could secure approximately 1,500 positions, but around 1,700 jobs face uncertainty.
- Hilco Capital’s 2018 acquisition of Homebase has led to financial challenges, resulting in an £84m loss in recent reporting.
Homebase, a noted DIY chain in the UK, is currently in the process of appointing administrators, with reputable firm Teneo expected to handle the intricate insolvency proceedings. This move, reported by The Times, involves around 130 Homebase locations. The timing is crucial as negotiations are focused on a pre-pack sale strategy, with the aim of retaining a substantial number of the company’s existing employees.
Reports from Sky News suggest that The Range is poised to acquire up to 75 Homebase stores, a transaction that includes outlets in Ireland. This acquisition is anticipated to be finalised promptly, potentially preserving close to 1,500 jobs. However, this development leaves approximately 1,700 positions in a precarious situation, highlighting the broader implications for the workforce during this transition period.
Back in 2018, Hilco Capital purchased Homebase for a nominal sum of £1. Since then, the company has faced significant financial hurdles. The latest figures reveal a daunting £84m loss for the year ending January 2023, sharply contrasting with a profit of £30m just the previous year. Concurrently, Homebase’s sales revenues fell from £788m to £701m, underscoring the fiscal challenges that the organisation faces.
In response to these financial setbacks, strategic actions have been initiated by Homebase’s leadership. Managing Director Damian McGloughlin, addressing suppliers back in August, acknowledged the brand’s underperformance. He delineated plans for an ‘active sale process’ aimed at attracting new investment, in pursuit of revitalising the company’s growth trajectory in the home and garden sector. Furthermore, a deal earlier this year saw the transfer of 10 stores to another retailer, a move intended to streamline operations.
The future of Homebase hangs in the balance, with significant job implications and strategic decisions underway.
