Homebase has officially entered administration, a move that threatens approximately 2,000 jobs. Despite efforts by Hilco, the parent company, to sell the retailer, no full buyer could be secured. Instead, CDS Superstores, the owner of The Range, has stepped in to purchase up to 70 Homebase stores along with the brand’s intellectual property, preserving around 1,600 jobs. However, this leaves 49 stores and head office positions uncertain, pending a further search for interested buyers by the administrators, Teneo.
In a statement, Homebase’s CEO, Damian McGloughlin, described the challenges of the past three years as "incredibly difficult" for the home improvement sector. He attributed the brand’s decline to reduced consumer confidence and spending after the pandemic, persistent inflation, global supply chain disruptions, and irregular weather patterns. McGloughlin noted that despite restructuring efforts and attempts to secure additional investment, the business’s recovery was unsuccessful.
Teneo’s joint administrator, Gavin Maher, acknowledged the “uncertain and difficult” time for staff and welcomed any potential buyers interested in the remaining stores. These locations will continue to operate in the short term, with no immediate layoffs.
The decision by CDS Superstores will see Homebase’s online presence maintained, while its physical locations transition into The Range stores. Meanwhile, Sainsbury’s has recently acquired 11 Homebase stores and is set to purchase an additional three.
Homebase’s financial troubles date back to 2016 when Wesfarmers, an Australian company, acquired the chain and promptly replaced its senior management. Wesfarmers' attempt to break into the UK market faltered due to "self-induced" errors, including poor demand forecasting and the removal of popular product lines. Hilco took ownership of Homebase in 2018 for just £1 and instituted a series of cost-cutting measures, but the brand continued to struggle, posting an £84.2 million loss last year.
Market analysts note that Homebase faced increasing competition, especially as consumers, constrained by rising living costs, have been cautious in spending on home improvements.
Founded in 1979 by Sainsbury’s in partnership with Belgian-owned GB-inno-BM, Homebase expanded quickly through the 1980s and ’90s. After changing ownership multiple times, the brand ultimately struggled to retain its market position, culminating in its current financial troubles.
