Homebase in Morecambe announces closing down sale

The store on Hillmore Way in the town is not on a list of shops up for sale after the DIY giants went into administration.

A total of 74 Homebase stores across the country are on the market.

When Homebase fell into administration Chris Dawson, owner of The Range, rescued 70 stores in a pre-pack deal.

It is understood the stores to have launched sales were not included in the sale, it has been reported.

The deal with Mr Dawson also included the 40-year-old brand and its website.

It has since been revealed that the Homebase name will continue solely online, as all 70 stores sold are set to be rebranded as The Range superstores.

The Range sells homeware and DIY products from its more than 200 store estate in the UK.

Administrators Teneo consultancy will now oversee the implementation of The Range's rescue deal and the sale of all of Homebase's remaining assets, including the remaining 49 stores.

The buyout has saved approximately 1,600 jobs, but around 2,000 jobs and the 49 remaining stores face uncertainty.

The stores continue to operate as usual, while a buyer is sought.

A statement from the Insolvency Service said: “On 13 November 2024 HHGL Limited and Hampden Group Limited, operating under the brand Homebase, entered administration and Gavin Park, Gavin Maher and Adele Macleod of Teneo Financial Advisory Limited were appointed as Joint Administrators. Homebase has c.3600 employees and 133 stores across the UK.

“Immediately following the appointment, the Joint Administrators acting for Homebase completed a sale of up to 70 UK stores, the brand and IP to CDS (Superstores International) trading as The Range and wilko, which is expected to secure up to c.1,600 jobs.

"Homebase stores will continue to trade until handed over to CDS. This follows the sale of 11 UK stores to Sainsbury’s, with completion expected on a further three.

"The remaining 49 UK stores will continue to trade as normal whilst the Joint Administrators continue discussions with interested parties.

“There will not be any immediate redundancies whilst the Administrators urgently assess the position of the Companies.

"All employee wages and benefits will be paid for their period of employment.

"Customer orders will still be fulfilled as far as possible, and arrangements will be put in place to allow gift vouchers to be used.

“This will be a worrying time for employees, as well as creditors. Government will do all it can to support them.”

Homebase's collapse comes after the retailer went through a string of different owners.

Argos sold it for £360million in 2016 to Aussie conglomerate Wesfarmers, which tried and failed to use it as a UK launchpad for its Bunnings DIY brand.

Despite DIY spending soaring in the pandemic, Homebase racked up losses as costs spiralled, and the cost-of-living crisis then hit demand.

Homebase chief executive officer Damian McGloughlin said it had been an "incredibly challenging three years".

"A decline in consumer confidence has been exacerbated by persistent high inflation, global supply chain issues and unseasonable weather," he added.

Teneo Financial Advisory Limited have been approached for comment.