Homebase could save 70 stores by using The Range

Reports suggest that billionaire Chris Dawson, owner of The Range, is in negotiations to buy 70 stores across the UK and Ireland.

Since the pandemic, Homebase has struggled with the rising cost of energy and labour. They have also seen a decline in demand from consumers who are reducing their DIY projects due to the high cost of living.

Hilco, the company that has turned around HMV successfully, bought the DIY chain from Australian retailer Wesfarmers in 2018 for PS1 through a voluntary agreement. This led to the closure of many stores and the renegotiating of rent agreements.

Wells Fargo is not expected to extend the credit facility of PS95 million that expires in one month.

Tomorrow (14 November), administrators are expected be appointed, but hundreds of jobs at Homebase stores and the head office in Milton Keynes could be cut if no other buyers can be found.

Dawson said to The Telegraph that he was “delighted” to have been able to save many stores and job opportunities. He also expressed his excitement about adding the Homebase name and its subsidiaries to the growing Range group.

Sainsbury’s announced in August that it would be converting 10 Homebase locations into new supermarkets. Homebase was first launched by Sainsbury’s in 1979 before it was sold in 2006.

CDS Superstores is the parent company of The Range and it also wants to purchase Homebase’s online business as well as its brands.

Homebase’s demise would be the latest in a series of recent collapses, including Carpetright, Paperchase, and Wilko. CDS bought Wilko when the company collapsed in 2013. However, it did not purchase any stores.

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