Homebase has been bought to retail group CDS in a rescue deal securing as much as 1,600 jobs and 70 shops however leaving the way forward for its remaining 2,000 employees and 49 outlets unclear.
The DIY retailer appointed directors at consultancy Teneo on Wednesday earlier than CDS, which owns The Range homeware retailers, purchased nearly all of its shops out of administration.
Teneo mentioned the remaining 49 UK shops will proceed to commerce as regular whereas directors attempt to discover a purchaser.
CDS, which is owned by retail magnate Chris Dawson, purchased the 40-year-old Homebase model.
Damian McGloughlin, chief government of Homebase, mentioned the final three years had been “incredibly challenging” for DIY shops, blaming “a decline in consumer confidence and spending” after the pandemic.
“Against this backdrop, 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.”
Homebase was purchased for £1 by funding agency Hilco Capital in 2018, which launched a swathe of cost-cutting measures within the subsequent years.
But the retail chain struggled as prospects in the reduction of on spending amid the cost-of-living disaster, and reported an £84.2 million loss final 12 months.
In August, Sainsbury’s struck a deal to purchase 10 Homebase shops and convert them into supermarkets.
The jobs nonetheless in danger embody employees at Homebase’s head workplace in Milton Keynes, in addition to the remaining shops.
The rescue deal comes after a hunt for a purchaser from Homebase’s earlier homeowners Hilco, which is assumed to have lasted for the final two months.
Mr Dawson, whose CDS acts as father or mother firm to The Range, additionally purchased elements of excessive avenue retailer Wilko after it collapsed final 12 months.
It is unclear which shops will stay branded as Homebase after the deal, whereas directors didn’t instantly disclose the places of the 49 retailers which weren’t included within the deal.
The directors mentioned all worker wages and advantages can be paid for his or her interval of employment, whereas buyer orders will nonetheless be fulfilled so far as potential.
