Homebase 'collapses into administration' as 130 shops face closure

Homebase could be the next high street casualty amid reports that the DIY and garden store is preparing to appoint administrators. Around 130 shops are facing the risk of closure according to reports. It is the latest chain to go following Carpetright, The Body Shop, Wilko and Paperchase.

According to reports, Homebase is preparing to line up Teneo to handle an insolvency process for its UK operation. Homebase owner Hilco Capital, which took control of the chain in 2018, was due to initiate a formal process to sell the chain over summer. Homebase operated as a subsidiary under the Home Retail Group from October 2006 until 2016 and was bought by Australian retailer Wesfarmers in 2016.



Get breaking news on BirminghamLive WhatsApp And two years later, the retailer reported losses of worth £57million in relation to the takeover. In May 2018, Homebase was bought by Hilco for just £1. In 2018, Homebase went through a company voluntary arrangement (CVA) and closed over 100 stores which led to 1,500 job losses.

Homebase lost more than £40million in 2022, according to accounts filed at Companies House, although last year's performance is believed to have been significantly better. In August this year, Homebase managing director Damian McGloughlin wrote to suppliers saying it was trading "behind where we planned to be" and would begin an "active sale process" to seek new investment. Homebase has had discussions with a number of parties in addition to The Range, including B&M European Value Retail and Kingfisher, about a deal but didn't reach one, The Times reported.

Chris Dawson, who owns and runs The Range homeware outlets, is working on a takeover deal to take as many as 70 Homebase stores into his shopping empire, The Telegraph states. The businessman, nicknamed the "Del Boy billionaire", is said to be working with Teneo to preserve nearly 1,600 jobs across the UK. Up to 1,000 frontline and head office staff remain at risk of being made redundant.

Mr Dawson said: "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 Mirror has contacted Hilco Capital for comment..