Homebase ‘set for administration’ with thousands of jobs at risk
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.
Rescue deal
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.
Struggles
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.
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Too many retailers with the same mix of bland overpriced offerings. A fallout is inevitable which is rough, very rough on the workforce. They pay the biggest price for poor decision making by senior execs.