A UK-based retailer, known for homeware and furniture, is finalising a deal to acquire a significant portion of Homebase stores, saving around 1,500 jobs. However, about 1,700 additional jobs remain uncertain.
The deal, expected to involve a "pre-pack sale" by administrators, will see the UK retailer in question, The Range, take on approximately 75 Homebase locations, including stores in Ireland, as well as Homebase's brand and e-commerce operations. Approximately 1,500 Homebase employees will transfer to The Range as part of this acquisition.
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The restructuring is being managed by the advisory firm Teneo, which has been seeking buyers for Homebase's assets. Nearly 50 Homebase stores that aren't part of The Range deal may still attract interest from discount grocery chains, DIY retailers, and other brands. This deal comes after six years of Homebase ownership under the investment firm Hilco, which has also been involved in notable retail revivals such as HMV. Hilco's tenure with Homebase included a series of recovery attempts, including a company voluntary arrangement (CVA) in 2018, which saw store closures and renegotiated rental agreements.
Previously owned by various entities, including Wesfarmers and Sainsbury's, Homebase has faced ongoing financial challenges, amplified by the COVID-19 pandemic and the recent cost-of-living crisis. Wesfarmers' ownership was particularly rocky, resulting in substantial losses and a brief but turbulent period for the brand. Most recently, Homebase reported losses exceeding £40 million in 2022, although there were signs of improvement in 2023.
The Range, controlled by Chris Dawson's CDS Superstores, has been expanding its footprint, including acquiring the Wilko brand in 2023. The Range now operates over 200 stores across the UK, offering an array of home and DIY products.
Source: www.news.sky.com