The Range is circling a deal with Homebase to snap up a chunk of the business that will save almost 1,500 jobs.

Homebase 2024 store fascia

Source: Homebase

The discounter is closing in on a pre-pack sale of several Homebase stores as the struggling home improvement retailer appoints administrators. 

According to Sky News, administrators are being lined up to handle the sale that is hoped to save close to 1,500 jobs but would leave a further 1,700 at risk.

The deal is expected to take place today and will see The Range-owner CDS take on 75 Homebase stores, including those in Ireland, and the brand’s ecommerce business.

Teneo, which has been appointed joint administrator, is seeking buyers for nearly 50 remaining Homebase stores. 

Interest is already said to have been registered by discount food retailers, DIY rivals and other high street brands, according to Sky News.

Homebase recently sold 11 UK stores to Sainsbury’s and exchanged on a further three, and according to Teneo the remaining 49 UK stores will continue to trade as normal whilst it continues “active discussions with interested parties.”

Homebase CEO Damian McGloughlin said: “It has been an incredibly challenging three years for the home and garden improvement market. A decline in consumer confidence and spending following the pandemic has been exacerbated by the impact of persistent high inflation, global supply chain issues and unseasonable weather. 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.

“My priority is and continues to be our team members, and I recognise that this news will be unsettling for them. The sale of up to 70 UK stores to CDS is expected to protect up to 1,600 jobs and the remaining 49 UK stores will continue to trade as normal while the Administrators complete discussions with potential buyers. 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.”

Homebase employs 3,600 staff across its head office and stores, including those employees expected to transfer to CDS as part of the transaction. According to a statement released by Teneo, there will not be any immediate redundancies whilst the position of Homebase is being assessed, and all employee wages and benefits will be paid for their period of employment.

The joint administrator also noted that customer orders would still be fulfilled as far as possible, and arrangements would be put in place to allow gift vouchers to be used.

Joint administrator Gavin Maher said: “We appreciate that this is a very difficult and uncertain time for all involved. 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. 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. We thank Homebase’s team members and other stakeholders for their continued support.”