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Homebase owes over £650m to unsecured creditors post collapse

With unsecured creditors ranking behind secured creditors in the repayment process, it is unlikely that the likes of AO World and Halfords will recover what they are due

Homebase still owes more than £650m to unsecured creditors, including AO World, Halfords, and The Hut, following its collapse into administration in November 2024. 

According to Teneo, the DIY retailer’s appointed administrator, unsecured creditor claims totalled £657m – of which roughly £100m is owed to trade creditors. 

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With unsecured creditors ranking behind secured creditors in the repayment process, it is unlikely that the likes of AO World and Halfords will recover what they are due. 

New filings at Companies House revealed a breakdown of Homebase’s debts, which included a £2.9m liability to Close Brothers for till systems, £1.7m to XPO for logistics services, and about £750k to AO World for appliances linked to Homebase’ kitchen category.   

The largest unsecured debts included an intra-group claim of about £534m owed to Ark Finco, which already provided an £80m working capital facility. This was fully drawn at the time of administration. 

It is understood that Teneo is seeking legal advice on the security status of the intra-group debt, which may yet alter the outcome for creditors. 

While Homebase was already struggling with rising debt, the group was tipped over the edge when Wells Fargo declined to extend a £95m lending facility which was due to expire in December 2024. 

The London-based lender raised concerns about Homebase’s trading prospects. With no further financing options, directors opted for an administration process.

Teneo raised “material uncertainty” about Homebase’s ability to continue trading once Wells Fargo’s £95m loan neared its end. The firm attempted to either refinance or find a buyer, but was ultimately unsuccessful and settled on the November administration. 

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