Homebase could be heading for a partial collapse, putting thousands of jobs at risk, amid reports that the chain has appointed insolvency experts with a potential buyer of parts of its 130-store estate also circling.
The DIY retailer is reportedly lining up insolvency practitioners at the Teneo consultancy, which could see it placed into administration.
Retail magnate Chris Dawson, who owns The Range homeware outlets, is also reportedly planning a last-minute rescue deal which could see him buy as many as 70 Homebase stores.
If the buyout deal goes ahead, it could see about 1,500 jobs saved, but at least 1,700 others would still be in doubt, Sky News reported.
Homebase was bought for £1 by investment firm Hilco Capital, which has since brought in a swathe of cost-cutting measures.
But the retail chain has struggled as customers cut back on spending amid the cost-of-living crisis, and reported an £84.2 million loss last year.
In August, Sainsbury’s struck a deal to buy 10 Homebase stores and convert them into supermarkets.
Homebase declined to comment, while Teneo and The Range have been contacted for comment.
It comes after a hunt for a buyer from Homebase’s current owners which is thought to have lasted for the last two months.
Mr Dawson is also in talks to buy Homebase’s 40-year-old brand and its website, in a deal which could cost about £30 million.
The businessman, whose CDS Superstores acts as parent company to The Range, bought parts of high street retailer Wilko after it collapsed last year.
He told the Telegraph newspaper: “We are delighted to be able to save so many stores and jobs, and look forward to adding the Homebase brand and subsidiaries to the expanding Range group of companies.”
The Range sells homeware and DIY products from its more than 200 store estate in the UK.
Why are you making commenting on The National only available to subscribers?
We know there are thousands of National readers who want to debate, argue and go back and forth in the comments section of our stories. We’ve got the most informed readers in Scotland, asking each other the big questions about the future of our country.
Unfortunately, though, these important debates are being spoiled by a vocal minority of trolls who aren’t really interested in the issues, try to derail the conversations, register under fake names, and post vile abuse.
So that’s why we’ve decided to make the ability to comment only available to our paying subscribers. That way, all the trolls who post abuse on our website will have to pay if they want to join the debate – and risk a permanent ban from the account that they subscribe with.
The conversation will go back to what it should be about – people who care passionately about the issues, but disagree constructively on what we should do about them. Let’s get that debate started!
Callum Baird, Editor of The National
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereLast Updated:
Report this comment Cancel