Thousands of Homebase employees face an uncertain future as reports suggest the UK-based DIY retailer is preparing to appoint administrators, with homeware retailer The Range expected to acquire a portion of its outlets.
Homebase, which operates around 130 stores, is expected to enter insolvency, appointing Teneo to manage the process.
The Range, known for its expanding footprint in the UK and Ireland, is reportedly in talks to purchase up to 75 Homebase stores, including those in Ireland, through a pre-pack sale.
The acquisition could save nearly 1,500 jobs. However, the future remains unclear for another 1,700 employees, as stores not included in the deal could face closure.
The announcement of the agreement with The Range is anticipated later on Wednesday, with Teneo likely overseeing a sale process for any remaining stores.
Employees in stores that remain open could see their jobs transferred to new ownership.
Homebase has struggled with financial losses in recent years. Parent company HHGL reported an £85 million loss in the year ending January 2023, a stark decline from a £56 million profit the year before, following an 11% drop in sales.
The chain’s current owner, Hilco, which acquired it for £1 from Australian group Wesfarmers in 2018, began looking to sell the business earlier this year.
Founded by Sainsbury’s in 1979, Homebase has seen numerous ownership changes, including a sale to Hilco after Wesfarmers’ two-year ownership, which is often cited as one of the UK’s most troubled retail takeovers.
In recent developments, Sainsbury’s reacquired 10 Homebase stores for £130 million to convert them into supermarkets, reducing Homebase’s portfolio to approximately 130 stores—roughly half of the 250 it had when Hilco took control.
The Range, which operates 210 stores across the UK and Ireland, has been actively expanding after acquiring the Wilko brand last year, although it did not purchase any physical Wilko stores.
The Range has since launched several “concept stores” in locations such as Poole, Exeter, St Albans, and Rotherham, strengthening its high-street presence.
