The future of DIY giant Homebase hangs in the balance after reports it is set to slump into administration – leaving a question mark hanging over jobs and stores.
The home and garden chain – which has shops in Sittingbourne, Tunbridge Wells, Sevenoaks, Aylesford, Thanet, Chatham, Folkestone and Herne Bay – had been courting new buyers to bring in new investment, but no deal has been reached.
It reported an £84.2 million loss last year as customers slashed their spending as a result of the cost-of-living crisis.
The retailer is reportedly lining up insolvency practitioners at the Teneo consultancy, which could see it placed into administration – but not before a potential sale of dozens of its stores.
It is reported retail magnate Chris Dawson – who owns The Range – is negotiating to buy up to 75 of its stores in what is known as pre-pack administration – a sale before adminstrators take over the beleagued firm. It is not known which stores would be included.
Mr Dawson also purchased a number of former Wilko stores following its collapse.
Any agreement is expected to include the Homebase brand and its website in a £30m deal.
Sky News says the deal, if agreed, would protect 1,500 jobs – but leave 1,700 others in doubt. Homebase has around 130 stores nationwide.
In August, Sainsbury’s struck a deal to buy 10 Homebase stores and convert them into supermarkets.
It is certainly no stranger to problems in the past. In 2016, it was sold to Australian giant Wesfarmers in a deal worth £340m. But almost as soon as many saw their branding changed to the Aussie firm’s Bunnings, it saw a dramatic drop off in customers.
By 2018, it was sold to Hilco Capital – specialists in turning around troubled businesses for just £1 and returned to its original Homebase name.
As negotiations continue, Chris Dawson told the Telegraph: “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.”