Struggling DIY chain Homebase has fallen into administration, leaving 2,000 jobs at risk.
The owner Hilco had been looking to sell the struggling retailer but ended up not finding an outright buyer.
A retail tycoon nicknamed the “Del boy billionaire” has rescued several Homebase stores. The owner of a homeware chain The Range is buying up to 70 stores including the brand, securing about 1,600 jobs.
So, there are 49 stores left without a buyer and thousands of jobs have fallen at risk at stores as well as in the head office. Administrator Teneo refused to declare which stores are at risk of closing at this moment.
The 49 stores that are at risk will continue to trade while Teneo is looking for a buyer.
The Range owner CDS Superstores had also bought the brand name along with up to 70 stores including intellectual property.
The Homebase brand will continue trading online, while the physical shops will convert into The Range Stores.
Damian McGloughlin, the Homebase chief executive, said that the past three years had been “incredibly challenging” for DIY stores.
He said that a decline in consumer confidence and spending following the pandemic, persistent high inflation, global supply chain issues, and unseasonable weather all had an impact.
McGloughlin added that the business had restructured and sought investment, however, these efforts became unsuccessful. He said that the staff would find the news of the collapse “unsettling”.
Teneo joint administrator Gavin Maher said that this period is a very difficult and uncertain time for all those involved. He added that any party having an interest in buying the remaining stores should get in touch.
Homebase has completed the sale of 11 of its UK stores to Sainsbury’s, the supermarket is trying to buy the other three.
Hilco bought Homebase in 2018 for 1 Pound from Wesfarmers following a disastrous foray into the UK market for the Australian film. At present, Hilco reportedly putting the chain back on the market this spring.
The Range, which operates 210 stores in the UK and Ireland, acquired the Wilko brand and intellectual property rights the previous year.
The Rane said the acquisition of the Homebase brand would allow it to attract new customers and reach out to new communities. There is a plan to double the size of its store estate over the following four to five years.
