The Homebase shops in Lancashire at risk as DIY chain 'set for administration'

Watch more of our videos on ShotsTV.com 
and on Freeview 262 or Freely 565
Visit Shots! now
DIY chain Homebase could be heading for a partial collapse, putting thousands of jobs at risk.

The retailer is reportedly lining up insolvency practitioners at the Teneo consultancy, which could see it placed into administration, news agency PA said.

Chris Dawson, the retail magnate, who owns The Range homeware outlets, is also reportedly planning a last-minute rescue deal. It could see him buy as many as 70 Homebase stores.

Hide Ad
Hide Ad

Homebase has two shops in Lancashire - one in Queensway, Clitheroe, and one in Hilmore Way, Morecambe. Preston’s Homebase at Queen’s Retail Park was turned into a Range store in 2015.

If the buyout deal goes ahead, it could see about 1,500 jobs saved. However, at least 1,700 others would still be in doubt, Sky News reported. It is not know whether or how many Lancashire jobs could be affected.

HomebaseHomebase
Homebase | Homebase

Background

Investment firm Hilco Capital bought Homebase for £1, with it since bringing in a swathe of cost-cutting measures. As customers cut back on spending amid the cost-of-living crisis, the retail chain has struggled, with it reporting an £84.2m loss last year.

Sainsbury’s struck a deal in August to buy 10 Homebase stores and convert them into supermarkets.

Hide Ad
Hide Ad

It comes after a hunt for a buyer from Homebase’s current owners which is thought to have lasted for the last two months.

Dawson is also in talks to buy Homebase’s 40-year-old brand and its website, in a deal which could cost about £30m. The businessman, whose CDS Superstores acts as parent company to The Range, bought parts of high street retailer Wilko after it collapsed last year.

He told the Telegraph newspaper: "We are delighted to be able to save so many stores and jobs, and look forward to adding the Homebase brand and subsidiaries to the expanding Range group of companies."

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

Comment Guidelines

National World encourages reader discussion on our stories. User feedback, insights and back-and-forth exchanges add a rich layer of context to reporting. Please review our Community Guidelines before commenting.

News you can trust since 1837
Follow us
©National World Publishing Ltd. All rights reserved.Cookie SettingsTerms and ConditionsPrivacy notice