Kingfisher and M&S are reportedly considering bids for Homebase locations.
- The DIY retailer entered administration last month, posing a risk to its stores.
- Potential bids cover 20 to 25 stores, which might preserve many jobs.
- It remains uncertain if the bids reflect a joint or individual effort by the retailers.
- Home Bargains has also shown interest in a limited number of stores.
Kingfisher and M&S, two prominent retailers, are reportedly evaluating bids for the acquisition of several Homebase stores. This development follows Homebase’s recent entry into administration, which has jeopardised numerous store locations and jobs. The urgency is heightened by today’s deadline for submitting offers, as reported by Sky News.
The acquisition interest centres on up to 25 Homebase sites, with a focus on retaining hundreds of jobs that would otherwise be at risk. However, it remains ambiguous whether this figure represents a combined total for Kingfisher and M&S or if each entity is considering acquiring the same 20 to 25 stores independently.
Additionally, discount retailer Home Bargains has expressed interest in a smaller subset of the remaining Homebase stores. The interest from multiple retailers highlights the strategic value seen in the Homebase locations, despite the financial struggles that have led the chain to its present state.
Earlier this month, CDS (Superstores) International, the parent company of The Range and Wilko, secured the Homebase brand, its intellectual property, and up to 70 stores. This acquisition, however, leaves about 50 stores and approximately 2,000 jobs at risk, underscoring the urgency and importance of current negotiations with Kingfisher and M&S.
Homebase’s financial challenges began with a significant loss of £84 million in the fiscal year ending January 2023, a stark contrast to a £30 million profit the previous year. The chain also experienced a notable drop in sales from £788 million to £701 million during this period, prompting Hilco Capital to explore cost-saving measures and eventually leading to their current predicament.
The involvement of Kingfisher, M&S, and Home Bargains in bidding for Homebase stores could be pivotal in determining the future of these locations and jobs.
