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Struggling British home improvement retailer, Homebase, has entered administration, putting 2,000 jobs at risk. Although the company’s owner, Hilco, was searching for a buyer, they were unable to find one. However, the brand and up to 70 of the shops have been acquired by the owner of homeware chain The Range, who plans to safeguard around 1,600 jobs. The remaining 49 stores have not yet found a buyer, resulting in thousands of jobs being at risk both in-store and in head office. The administrators, Teneo, have not clarified which stores will be affected at this stage.
Teneo is currently looking for a buyer for the 49 at-risk stores, and they will continue to trade throughout this period with no immediate redundancies. CDS Superstores, the Range’s owner, has also bought the Homebase brand name and intellectual property in addition to the shops. The physical shops will transition into The Range stores, but the Homebase brand will survive online.
According to Homebase’s CEO, Damian McGloughlin, despite restructuring and seeking investment, the past three years have been “incredibly challenging” for DIY stores due to a decline in consumer confidence and spending caused by the pandemic, as well as high inflation, global supply chain issues, and unseasonable weather. He added that staff would find the news of the collapse “unsettling”. Teneo’s joint administrator, Gavin Maher, expressed his sympathy, saying “this is a very difficult and uncertain time for all involved”. However, he also encouraged anyone with an interest in purchasing the remaining stores to “get in touch”.
Homebase recently sold 11 of its UK stores to Sainsbury’s and is in the process of selling another three. Hilco had purchased Homebase in 2018 for £1 from Wesfarmers. After having made a series of mistakes upon their acquisition in 2016, causing the brand’s senior management team to be sacked, Wesfarmers caused significant damage to the business. Despite Hilco’s attempts to turn the company around, Homebase reported an £84.2m loss in 2020 and struggled to regain its market position. Analysts believe that increased competition in homewares is a major reason for their inability to do so
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