Homebase has been sold in a rescue deal to retailer CDS in a move securing up to 1,600 jobs and 70 stores, administrator Teneo has said.
But around 2,000 workers and 49 shops still remain at risk. The major high street DIY chain completed the sale to CDS, which trades as The Range and wilko.
This is in addition to the 11 UK stores sold off to Sainsbury’s, with the retail giant exchanging on a further three. The remaining 49 UK stores will continue to trade as normal while Teneo continues discussions with interested parties.
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Homebase CEO Damian McGloughlin said that the last three years have been “incredibly challenging” for the home and garden improvement market, citing a “decline in consumer confidence” and post-pandemic spending” as key reasons.
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High inflation, global supply chain issues and unseasonable weather also contributed to the retailer’s woes.
He said: “We have taken many and wide-ranging actions to improve trading performance including restructuring the business and seeking fresh investment. These efforts have not been successful and today we have made the difficult decision to appoint administrators.”
(Image: Getty Images)
McGloughlin added that he continues to prioritise Homebase team members and that he “recognises that this news will be unsettling for them”.
He said: “I want to thank our team members and supplier partners from the bottom of my heart for their hard work and commitment over many years.”
Gavin Maher, Joint Administrator, said: “The sale to CDS preserves the Homebase brand and secures a significant number of jobs and we hope to complete sales of additional stores over the coming weeks.
(Image: Getty Images)
“The remainder of the stores will continue to trade whilst buyers are sought and we would encourage any party with an interest to get in touch.”
Homebase currently employs around 3,600 staff across stores and Head Office, including the employees expected to transfer to CDS.
There are no immediate redundancies, while the administrators “urgently assess” Homebase’s position. Customer orders will still be fulfilled as far as possible and arrangements will be put in place to allow gift vouchers to be used.
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