Homebase Collapses into Administration; 2,000 Jobs at Risk as New Ownership Takes Over

2024-11-14

Homebase, the British DIY chain, has collapsed into administration, putting around 2,000 jobs at risk. The company, owned by Hilco since 2018, had been struggling for several years due to a decline in consumer confidence, persistent high inflation, global supply chain issues, and unseasonable weather. Following this troubled period, the administration process resulted in the sale of up to 70 Homebase stores and the brand itself to CDS Superstores, owner of The Range, securing approximately 1,600 jobs.

Damian McGloughlin, CEO of Homebase, stated that the DIY retail landscape had become increasingly challenging, exacerbated by a cost-of-living crisis that saw consumers cutting back on spending. Despite efforts to restructure the business and attract fresh investment, these measures ultimately failed to restore profitability. In the previous year, Homebase reported an £84.2 million loss.

The remaining 49 stores will continue trading temporarily while administrators Teneo seek buyers. There will be no immediate redundancies, and employees will continue to receive wages and benefits during this uncertain period. The Range, which has over 200 stores across the UK, intends to rebrand the acquired Homebase outlets and incorporate its broader product offering while retaining some of Homebase’s heritage.

This latest development follows a difficult period for Homebase, which saw a significant decline in its market position after a previous disastrous acquisition by the Australian group Wesfarmers. Despite some early signs of recovery post-acquisition, the brand struggled to compete effectively, leading to substantial losses and ultimately prompting the search for a sale.

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