Homebase could be the next high street casualty amid reports that the DIY and garden store is preparing to appoint administrators. Around 130 shops are facing the risk of closure according to reports. It is the latest chain to go following Carpetright, The Body Shop, Wilko and Paperchase.
According to reports, Homebase is preparing to line up Teneo to handle an insolvency process for its UK operation. Homebase owner Hilco Capital, which took control of the chain in 2018, was due to initiate a formal process to sell the chain over summer. Homebase operated as a subsidiary under the Home Retail Group from October 2006 until 2016 and was bought by Australian retailer Wesfarmers in 2016.
Get breaking news on BirminghamLive WhatsApp And two years later, the retailer reported losses of worth £57million in relation to the takeover. In May 2018, Homebase was bought by Hilco for just £1. In 2018, Homebase went through a company voluntary arrangement (CVA) and closed over 100 stores which led to 1,500 job losses.
Homebase lost more than £40million in 2022, according to accounts filed at Companies House, although last year's performance is believed to have been significantly better. In August this year, Homebase managing director Damian McGloughlin wrote to suppliers saying it was trading "behind where we planned to be" and would begin an "active sale process" to seek new investment. Homebase has had discussions with a number of parties in addition to The Range, including B&M Europea.
