Major retailers ‘in talks’ to buy collapsed Homebase sites before deadline today

3 weeks ago admin

Three major high street retailers are reportedly eyeing up dozens of Homebase stores after it fell into administration this month.

Marks and Spencer and Kingfisher – the owner of B&Q – have both expressed interest in buying some Homebase sites according to a report from Sky News. The two companies are believed to be preparing offers for between 20 and 25 Homebase stores. It is not clear exactly how many – or which stores – could be saved.

Sky News also reports that discount giant Home Bargains is also in the mix to take on a small number of Homebase sites. The home and DIY chain collapsed into administration earlier this month putting 74 stores and around 2,000 jobs at risk. The deadline for offers is today.

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CDS (Superstores) International, the owner of The Range and Wilko, snapped up the Homebase brand, IP and up to 70 stores earlier this month, leaving around 50 stores left. All of these stores are set to be rebranded as The Range shops. The range also took on around 1,600 Homebase workers.

Back in August, 10 Homebase stores were sold to Sainsbury's. The deal was completed in September, and the new sites are set to open by the summer of 2025. Sainsbury's said the deal – which included the redesign of the new stores – would cost it £130million overall.

Hilco Capital – which bought Homebase for £1 back in 2018 – drafted in the businesses management firm Teneo earlier this year to explore multiple cost-saving options after the retailer reported a £84million loss in the year to January 2023 from a profit of £30million the year prior.

Sales also plummeted from £788million to £701million during the period. The firm was then appointed as the administrator when the firm collapsed this month. Damian McGloughlin, chief executive of Homebase, said at the time of the announcement: "It has been an incredibly challenging three years for the home and garden improvement market. My priority is and continues to be our team members, and I recognise that this news will be unsettling for them."

Both M&S and Kingfisher have declined to comment on the reports. The Mirror has reached out to Teneo for comment.