Homebase readies to bring in administrators
The pre-pack sale would bring an end to the six-year ownership of Homebase by Hilco, which previously rescued other retailers such as HMV
Homebase are reportedly lining up administrators from Teneo to handle a pre-pack deal with The Range that will save over 1,500 jobs, Sky News has learned.
While The Range is said to be readying a deal to snap up a majority of the DIY retailer’s stores, the future of the other outlets – where a further 1,700 people work – is left uncertain.
It is expected that this deal with The Range will take place today (13 November), and will involve the acquisition of up to 75 Homebase stores both in the UK and Ireland.
Along with the stores, The Range also intends to take over the Homebase brand and ecommerce business.
London-based advisory firm Teneo will be tasked with seeking buyers for the remaining 50 Homebase stores not included in the deal with The Range, once it is appointed administrator.
The pre-pack sale would bring an end to the six-year ownership of Homebase by Hilco, which previously rescued other retailers such as HMV.
Prior to that, Homebase was owned by Australian group Wesfarmers, during which it lost hundreds of millions of pounds and threatened to collapse altogether.
While Homebase’s performance last year had shown an improvement, accounts filed at Companies House revealed that the DIY group lost more than £40m in 2022.
Based in Devon, The Range is part of CDS Superstores, which last year acquired the brand and intellectual property assets of Wilko for £7m, following a similar collapse.
Since then CDS Superstores has opened a number of new Wilko stores.
The Range currently trades from more than 200 outlets across Britain, selling homewares, furniture and DIY products.
Homebase has been approached for comment.
