A BIG DIY chain with over 150 branches “could be sold” again after closing 93 stores.
Homebase could be put up for sale after discussions were reportedly held with potential buyers, including big-name discounters.
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Hilco Capital, which bought the troubled chain back in 2018 for just £1, has held talks with The Range and B&M about a sale, according to The Times.
It would be the second time the chain has been put up for sale in four years.
Reportedly, Homebase’s brand name, intellectual property and 170 stores, could be “broken up and sold off” under new owners.
The firm has around 150 Homebase stores and owns about 15 Bathstore outlets, the specialist bathroom retailer.
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It also owns a number of Decorate by Homebase stores, which are smaller high-street versions of its main outlets.
Hilco is said to have “extracted the value it wants” from the chain and is now looking to sell it on, according to sources speaking to The Times.
It’s important to note though that nothing has been confirmed and it’s understood there is currently no formal sales process in place.
A change in ownership doesn’t mean anything will change immediately in terms of the chain’s stores.
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The chain has closed 93 stores since it was taken over by Hilco Capital in 2018.
Hilco bought the hardware store chain for £1 from Australian firm Wesfarmers, which paid £340million in 2016 for what has been dubbed one of the “most disastrous takeovers ever seen”.
Wesfarmers is known for its Bunnings chain in Australia. It attempted to transform Homebase into its own DIY brand.
Homebase store closures 2018 – which shops are closing, who owns the company and why are branches shutting down?
Prior to the Hilco takeover, Homebase had 250 stores at its peak and 12,000 staff.
After Hilco took over, Homebase entered a company voluntary arrangement (CVA) for around 18 months and restructured its business. It then soon returned to profit.
Hilco put the business up for sale for the first time since taking it over in 2020.
Osmond Capital, owned by wealthy businessman Hugh Osmond, was reported to have been assembling a £300million takeover bid, but nothing came of it.
The last accounts available for Homebase are for the year to December 2021, when the brand made an operating profit before exceptional items of £63.7million on sales of £788.2million.
A Homebase spokesperson said: “There are no active conversations to sell Homebase.”
B&M declined to comment on this story.
The Sun has also contacted Hilco Capital and The Range for comment and will update this story when we hear back.
Back in November, Homebase announced the closure of two stores.
It pulled the shutters down on its store in Marsh Mills Retail Park in Plymouth, as well as its Banbury site.
The chain also pulled the plug on its shop at the O2 Centre on Finchley Road in London in December.
This followed the retailer shutting its Newport store in South Wales in September.
Last year, both B&M and The Range bought parts of Wilko’s business after it collapsed.
B&M bought up to 51 stores from the rival in a £3million deal – to be converted into B&Ms.
Wilko’s name and intellectual property were bought by rival discounter The Range earlier in the summer.
CDS Superstores, which trades as The Range and Wilko, revealed in December that it would relaunch the chain across Britain’s high streets.
What else is happening on the high street?
Retailers have been feeling the squeeze since the pandemic with shoppers cutting back on spending due to the soaring cost of living crisis.
High energy costs and a move to online shopping after the pandemic are also taking a toll and many high street shops have struggled to keep going.
The high street has seen a whole raft of closures over the past year and more are on the way.
Several major brands have collapsed in 2023, including Wilko and Paperchase.
The Homebase news comes just weeks after The Body Shop tumbled into administration.
It then announced last week that it would be closing almost half of its 198 stores.
Seven branches shut with immediate effect including sites in Surrey Quays and Oxford Street, London.
In early February, Hobbycraft’s owner, Bridgepoint, was reported to be exploring “strategic options” for the business.
These options could include putting the retailer up for auction.
In January, struggling fashion brand Superdry said it was looking at various “cost-saving options” after reports it is considering a major restructuring which could include store closures and job cuts.
It was working with advisers at PwC on a plan which could lead to a CVA or another form of restructuring.
Such a move could result in store closures and potentially force rent reductions with landlords.
Further store closures
Boots is set to shut another 10 shops in the coming weeks.
The move by health and beauty retailer Boots forms part of plans to close 300 sites.
Matalan closed down one of its branches in Leeds on February 24.
High street designer brand Kurt Geiger has pulled down the shutters on its shop in Brighton.
Department store Fenwick also shut its flagship London store in Bond Street on February 3.
Lidl will be pulling the shutters down on its site in Thornaby on February 29.
High street fashion chain Peacocks pulled down the shutters of its branch in Bury St Edmunds, Suffolk, last month.
Entertainment retailer HMV also shuttered its branch in Boston, Lincolnshire, on January 27.
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And, the hospitality sector has also been hit, seeing pubs like Wetherspoons and restaurants like Frankie & Benny’s and Chiquito shut their doors.
Plus, a total of 29 bank branches are set to close their doors before the end of the month.
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