The Range, the privately owned general merchandise retailer, is closing in on a deal to acquire a significant portion of Homebase, which is expected to save approximately 1,500 jobs but raises concerns about at least 1,700 more.
According to Sky News, administrators are being prepared for a pre-pack sale of numerous Homebase stores in hopes of preserving a considerable number of the company’s remaining jobs.
The agreement with The Range, set to take place on Wednesday, will involve acquiring up to 75 stores, including Homebase’s Irish locations.
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The Range will also take over Homebase’s brand and ecommerce business, and will absorb around 1,600 of the DIY chain’s employees.
Teneo, managing the sale process in recent months, is expected to look for buyers for nearly 50 remaining Homebase stores once appointed as administrator.
Interest has already been expressed by discount food retailers, DIY competitors, and other high street brands, according to insiders.
This sale marks the end of Homebase’s ownership by Hilco over the past six years, a retail investor known for rescuing brands like HMV and leading a successful revival of the business. The retail industry is facing mounting cost pressures following the Budget, with the trade body cautioning about inevitable job losses and price increases.
Previously owned by Australian group Wesfarmers, Homebase incurred significant losses and faced collapse. Efforts to revitalize the brand and operations were hindered by the COVID-19 pandemic and reduced consumer spending on major home improvement projects during the cost-of-living crisis.
With a history of ownership by J Sainsbury and Home Retail Group alongside Argos, Homebase has had a turbulent past.
The Range’s interests include the Wilko brand. Pic: Reuters
After Wesfarmers’ ownership, which saw store closures and revised rent agreements in 2018, Homebase continues to face financial challenges. Despite reporting a loss of over £40m in 2022, recent performance is believed to have improved.
In addition to its UK operations, Homebase also operates in Ireland.
Based in Devon, The Range is part of CDS Superstores, controlled by businessman Chris Dawson.
Last year, The Range acquired the brand and intellectual property assets of Wilko for £7m after it went into administration.
Since then, Mr Dawson has expanded the Wilko brand with new stores.
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The Range operates over 200 outlets across the UK, specializing in homewares, furniture, and DIY products.
Mr Dawson launched the first Range store in Plymouth in 1989.
Dubbed “the Del Boy billionaire” due to the unique number plate on his Rolls-Royce Wraith, Mr Dawson is renowned as one of the UK’s most successful retail entrepreneurs.
Hilco, Homebase, and Teneo have been approached for comments, while The Range was unavailable for comment.