The future of 49 Homebase stores across the UK is uncertain, potentially putting 2,000 jobs at risk. The DIY chain was recently sold to the owner of The Range in a rescue deal, securing the future of up to 1,600 jobs and 70 stores. However, the fate of the remaining 49 stores is still unknown. The DIY retailer appointed administrators at consultancy Teneo before CDS, the owner of The Range homeware outlets, purchased the majority of its stores out of administration. The remaining 49 UK stores will continue to operate as usual while administrators search for a buyer.
In London, there are seven Homebase stores, including locations in Penge, Orpington, Catford, Streatham Vale, Hanworth, Ruislip, and Haringey. The brand was recently bought by CDS, owned by retail magnate Chris Dawson. Damian McGloughlin, the chief executive of Homebase, expressed the challenges faced by DIY stores in the past three years, attributing them to a decline in consumer confidence and spending post-pandemic.
Despite efforts to improve trading performance, including restructuring the business and seeking fresh investment, Homebase continued to struggle. The chain reported an £84.2 million loss last year, leading to the difficult decision to appoint administrators. The rescue deal follows a search for a buyer by Homebase’s previous owner, Hilco Capital, spanning two months. The fate of the 49 outlets not included in the deal remains undisclosed.
It is uncertain which stores will retain the Homebase branding after the deal. The rescue deal also impacts jobs at Homebase’s head office in Milton Keynes. Employee wages and benefits will continue to be paid for their period of employment, while customer orders will be fulfilled to the best of the company’s ability. In August, Sainsbury’s acquired 10 Homebase stores to convert them into supermarkets.
The administrators did not immediately disclose the locations of the 49 stores excluded from the deal. This uncertainty adds to the challenges faced by employees and customers of these Homebase locations. The situation highlights the ongoing struggles of retail chains amidst economic uncertainties and shifting consumer behaviors.
The future of Homebase and its remaining stores will depend on the efforts of administrators to find suitable buyers. The impact of the rescue deal on employees, customers, and the retail landscape in the UK remains to be seen. Stay updated with the latest developments on this story by subscribing to our daily newsletters for the most recent updates from across London.
